What is the largest real estate investment trust?
Canadian Apartment Properties was the real estate investment trust (REIT) with the largest market cap in Canada as of April 11, 2024. The market cap, or the aggregate value of the total outstanding shares of the company, was 5.4 billion U.S. dollars during that period.
Canadian Apartment Properties was the real estate investment trust (REIT) with the largest market cap in Canada as of April 11, 2024. The market cap, or the aggregate value of the total outstanding shares of the company, was 5.4 billion U.S. dollars during that period.
| Symbol | Company | REIT performance (1-year total return) |
|---|---|---|
| SLG | SL Green Realty Corp. | 134.96% |
| DHC | Diversified Healthcare Trust | 113.82% |
| UNIT | Uniti Group Inc. | 103.15% |
| VNO | Vornado Realty Trust | 81.76% |
The five largest REITs in the United States in 2021 are: American Tower Corporation, Prologis, Crown Castle International, Simon Property Group and Weyerhaeuser.
Leading REITs worldwide 2024, by market cap
Prologis, American Tower, and Welltower were the real estate investment trusts (REITs) worldwide with the largest market caps as of April 11, 2024. All three REITs were headquartered in the United States.
As of the end of 2022, US public REITs have a total market capitalization of over $1.3 trillion2. Blackstone Real Estate Income Trust (“BREIT”) is by far the largest private REIT, with an NAV of $69.7 billion as of March 31, 2023.
- Prologis. $88,520,884,000. ...
- Annaly Capital Management. $73,637,249,000. ...
- AGNC Investment Corp. $61,240,000,000. ...
- American Tower Corporation. $58,982,900,000. ...
- Realty Income Corporation. $49,673,092,000. ...
- Crown Castle International. $38,973,000,000. ...
- VICI Properties. $37,289,217,000. ...
- Welltower Inc. $36,573,671,000.
RioCan Executives Look Back Over REIT's Journey
Canada's oldest REIT celebrated its 30th anniversary this month, a milestone for Toronto-based RioCan that was only possible through key changes to legislation now being reviewed again.
While real estate has never been a big part of Buffett's investing strategy, Berkshire Hathaway has owned shares of STORE Capital, a REIT focused on single-tenant operational real estate.
Where is the best place to hold a REIT?
Is a Roth or traditional IRA the best choice? To be clear, retirement accounts are ideal places to hold REIT investments, as the benefits of tax-deferred investing can magnify the already tax-advantaged nature of these companies.
How to Qualify as a REIT? To qualify as a REIT, a company must have the bulk of its assets and income connected to real estate investment and must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.
| REIT | Forward dividend yield |
|---|---|
| Blackstone Mortgage Trust Inc. (BXMT) | 12.1% |
| KKR Real Estate Finance Trust Inc. (KREF) | 13.5% |
| Easterly Government Properties Inc. (DEA) | 8.3% |
| Realty Income Corp. (O) | 5.5% |
Most of the largest REITs worldwide are U.S. based.
Direct real estate offers more tax breaks than REIT investments, and gives investors more control over decision making. Many REITs are publicly traded on exchanges, so they're easier to buy and sell than traditional real estate.
Key Points. REITs have outperformed stocks on 20-to-50-year horizons. Most REITs are less volatile than the S&P 500, with some only half as volatile as the market at large. Several individual REITs delivered significantly higher returns than the S&P 500.
1960-1961 The first REITs--Bradley Real Estate Investors, Continental Mortgage Investors, First Mortgage Investors, First Union Real Estate (now Winthrop Realty Trust, NYSE: FUR), Pennsylvania REIT (NYSE: PEI) and Washington REIT (NYSE: WRE)--are created. The latter three are still in existence today.
The largest REIT ETF is the Schwab U.S. REIT ETF SCHH with $5.96B in assets. In the last trailing year, the best-performing REIT ETF was PFFR at 13.86%. The most recent ETF launched in the REIT space was the iREIT - MarketVector Quality REIT Index ETF IRET on 03/06/24.
Moreover, private REITs are generally riskier investments compared to their publicly traded counterparts. They also may lack the same level of transparency, making it harder for investors to assess the underlying assets and the performance of the REIT.
Private REITs are real estate funds or companies that are exempt from SEC registration and whose shares do not trade on national stock exchanges. Private REITs generally can be sold only to institutional investors.
Are REITs riskier than stocks?
Are REITs Risky Investments? In general, REITs are not considered especially risky, especially when they have diversified holdings and are held as part of a diversified portfolio. REITs are, however, sensitive to interest rates and may not be as tax-friendly as other investments.
1. ARMOUR Residential REIT – 20.7% ARMOUR Residential REIT Inc.
A REIT will be closely held if more than 50 percent of the value of its outstanding stock is owned directly or indirectly by or for five or fewer individuals at any point during the last half of the taxable year, (this is commonly referred to as the 5/50 test).
| # | Name | Dividend % |
|---|---|---|
| 2 | Allied Properties REIT 2AP-UN.TO | 12.06% |
| 3 | Stelco 3STLC.TO | 11.20% |
| 4 | Birchcliff Energy 4BIR.TO | 10.88% |
| 5 | NorthWest Healthcare Properties REIT 5NWH-UN.TO | 10.20% |
REITs have average annual return of 9.7 per cent
The TSX REIT Index dates back to 1997 and, since then, Canadian REITs have generated an average annual return of 9.7 per cent. The TSX Composite Index delivered a seven per cent average annual return during that time.
