- Easy to Understand, Big Rewards: real estate investment trusts (REITs) are fairly easy to understand and tend to pay a high dividend.
- Pass-Through Taxation: REITs have an advantage over other stocks because of their pass-through taxation. Meaning that they can have greater profits from which to pay shareholder dividends than similar sized organizations.
- Non-Taxable Capital: depending on the distribution policy and annual earnings, a portion of a REIT's dividend may be deemed non-taxable.
- Predictable Revenue Stream: because lease periods on commercial properties are typically longer, REITs can offer a pretty predictable revenue stream
- Somewhat Resistant to Inflation: REIT rental incomes adjust themselves in line with cost of living and thus are less susceptible to devaluation related to inflation.
- Great Option for Retirement Money: holding real estate investments in your IRA or other retirement account can results in decades of tax-free compounding and thousands more dollars in retirement savings.
- No Headache: having a professional management team manage the day-to-day operations takes the headache of owning commercial property out of the mix - let the experts handle it!