Real Estate Investment Trusts (REITs)
REAL ESTATE INVESTMENT TRUST (REITs)
REITs allow individuals to invest in portfolios of large-scale, income-producing real estate while benefiting from pass-through tax advantages. They may own properties like apartments, warehouses, offices, or healthcare facilities—either diversified or niche-focused.
STRUCTURE & REQUIREMENTS
Originally created in the 1960s as business trusts, most REITs today are structured as limited partnerships with a publicly traded corporation acting as the general partner.
To qualify as a REIT under IRS rules, a company must:
Invest almost exclusively in real estate
Distribute at least 90% of taxable income to shareholders annually
TRADED VS NON-TRADED REITs
- Shares bought/sold on national exchanges
- Daily liquidity with real-time pricing
- Highly correlated to stock market performance
- Subject to brokerage fees
- Purchased directly from the issuer
- Limited redemption via internal programs
- Valued using periodic appraisals
- Higher upfront & back-end fees
PUBLIC VS PRIVATE OFFERINGS
Some REITs are registered with the SEC but not listed on public exchanges—such as mutual funds or non-traded REITs. Private REITs are unregistered and only available to accredited investors via a Private Placement Memorandum (PPM).
This is for informational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Risks include illiquidity, general market volatility, financing, interest rate sensitivity, and loss of principal. Consult the sponsor's PPM for full risk disclosures. There are risks associated with Real Estate Investment Trusts (REITs) and include but are not limited to the following: Typically, no secondary market exists for the security listed above. Potential difficulty discerning between routine interest payments and principal repayment. Redemption price of a REIT may be worth more or less than the original price paid. Value of the shares in the trust will fluctuate with the portfolio of underlying real estate. Involves risks such as refinancing in the real estate industry, interest rates, availability of mortgage funds, operating expenses, cost of insurance, lease terminations, potential economic and regulatory changes. This is neither an offer to sell nor a solicitation or an offer to buy the securities described herein. The offering is made only by the Prospectus.
1031 Capital Solutions
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services through Concorde Asset Management, LLC (CAM), an SEC-registered investment adviser. 1031 Capital Solutions is independent of CIS and CAM.