The Intelligent REIT Investor: How to Build Wealth with Real Estate Investment Trusts

Praise for The Intelligent REIT Investor

"Together, Brad Thomas and Stephanie Krewson–Kelly form the perfect ′Dynamic Duo′ to write the ′Bible′ for investing in REITs. Brad′s years of writing on REITs in numerous publications, along with Stephanie′s background as both a current REIT executive and former sell–side REIT analyst, provide a wonderful background to lead readers through the basics and intricacies of public real estate securities. Well done!"
Tom A. Lewis, retired Chief Executive Officer, Realty Income (NYSE: O)

"Whether you are new to the world of REITs or a more sophisticated investor looking to gain a greater understanding of REIT investment strategy, The Intelligent REIT Investor is an indispensable resource. Brad and Stephanie′s combined experience spans all aspects of the REIT sector, commercial real estate, and securities investing, and that valuable knowledge is imparted to the reader thoroughly, yet in an easily digestible manner."
Dave Henry, former Vice Chairman and Chief Executive Officer, Kimco Realty Corporation; Board Member of four public REITs: Columbia Property Trust; HCP, Inc.; Tanger Factory Outlet Centers, Inc.; and VEREIT, Inc.

"The Intelligent REIT Investor not only helps investors understand the top– level benefits of REIT investing strong long–term wealth creation, portfolio diversification, steady current dividend income, liquidity, and the like but also gives them a carefully structured approach for identifying which property segments, and even which individual REITs, would make the best additions to their own investment portfolios."
Brad Case, PhD, CFA, CAIA, Senior Vice President, Research & Industry Information, National Association of Real Estate Investment Trusts

"The Intelligent REIT Investor is a comprehensive go–to resource for Real Estate Investment Trusts. The authors share their tremendous knowledge of the REIT industry and provide an in–depth guide to investing in REITs during all economic times."
Drew Alexander, CEO, Weingarten Realty

Foreword by Martin Cohen

Preface

About the Authors

Part I: An Introduction to REITs

Chapter 1 What Is a REIT?

Size of the REIT Industry

Categories of REITs

Where to Find Information on REITs

Exchange–Traded Funds for Investing in REITs

Chapter 2 Why Invest in REITs?

Double–Digit Total Returns

Dividends

Liquidity

Portfolio Diversification

Hedge against Inflation

Transparent Corporate Structures

Chapter 3 REIT Dividends

REIT Yields

Are REIT Yields Safe?

Quantifying Dividend Safety

REIT Dividends and Taxation

Rockland REIT

Conclusion

Chapter 4 Leases

Lease Terminology

The Four Major Types of Leases

Leases & Tenant Bankruptcy

Chapter 5 REITs By Property Type

Diversified REITs

Triple–Net REITs

Health Care REITs

Industrial REITs

Lodging / Resort REITs

Mortgage REITs

Office REITs

Residential REITs

Retail REITs

Self–Storage Property Market

Part II: Investing in REITs

Chapter 6 Getting Technical

REIT Structures

UPREITs

OP Units

DownREITs

Publicly Traded, Non–Traded, and Private REITs

Externally Advised and Externally Managed REITs

Qualifying as a REIT

Chapter 7 REIT Performance

Historical Total Returns

Factors Influencing Demand for REIT Shares

REITs versus the Attractiveness of Other Investments (Lessons from History)

Company Attributes that Affect Performance

Weighted Average Cost of Capital and REIT Performance

REIT Performance in a Rising Interest Rate Environment

Conclusion

Chapter 8 Analyzing REITs

Operating Metrics

Profitability Metrics

Balance Sheet Metrics and Analysis

Valuation Metrics

Conclusion

Appendix A REITs Listed Alphabetically by Company Name

Appendix B REITs Listed Alphabetically by Ticker Symbol

Appendix C REITs by Sector

Index

Stephanie Krewson–Kelly analyzed REITs for top Wall Street firms from 1994 through 2009 and, today, heads the Investor Relations department for a publicly traded REIT. Her prior publications include REIT Roadmap: An Insider′s Guide to Successful Investing in Real Estate Investment Trusts (2nd edition, 2012).

R. Brad Thomas is an acknowledged expert in commercial real estate investing and REITs. He is editor of the Forbes Real Estate Investor newsletter and writes for Forbes and Seeking Alpha.