National Association of Real Estate Investment Trusts (Nareit)
What Is the National Association of Real Estate Investment Trusts (Nareit)?
The National Association of Real Estate Investment Trusts (Nareit) is a trade association that addresses the interests of real estate investment trusts (REITs) and other public companies that deal with the U.S. real estate market.
Nareit was laid out in 1960 because of changes in U.S. legislation that opened up real estate investing to more modest investors. The organization is situated in Washington, D.C., and advocates for the benefit of the REIT-based and real estate investment industry with investors and policymakers. It distributes research and consistently holds instructive events and gatherings.
Understanding National Association of Real Estate Investment Trusts (Nareit)
Nareit is a trade organization situated in Washington, D.C. It addresses the interests of the real estate and real estate investment industry, including commercial equity REITs, mortgage REITs, REITs traded on major stock exchanges, public non-listed REITs, and private REITs. As per the organization, REITs own more than $3.5 trillion in gross assets across the United States.
The organization's mission is to advocate for REIT-based real estate investment with policymakers and the global investment community and guarantee that everybody has the opportunity to benefit from real estate investment. It additionally lobbies for the industry by addressing its interests to American and global administrators and policymakers.
Nareit addresses north of 200 member organizations that team up to make investing in income-delivering real estate easier and more accessible through the purchase of stock. Individuals can access far reaching industry data that is consistently created and distributed by Nareit. They can likewise go to Nareit-sponsored events and meetings about the real estate industry and the performance of member REITs.
Nareit is run by an independent executive board, which is responsible for keeping the organization on target toward its objectives, including budgeting and planning. Board members come from different areas inside the industry and a large number of them head REITs and other real estate investment companies. Members of the organization's executive team, which is driven by the president and chief executive officer (CEO), are additionally part of the executive board.
Nareit is comprised of a community of industry professionals, scholastics, and companies that cooperate to advance the real estate industry and REITs.
Special Considerations
Nareit is partnered with several foreign substances in its political endeavors. The most noticeable relationship is with the FTSE Group and the European Public Real Estate Association. These groups laid out the FTSE EPRA/Nareit Global Real Estate Index Series, which highlights general trends in eligible real estate equities worldwide.
In October 2016, Nareit made a Real Estate Sustainability Council to increase its emphasis on advancing sustainability and environmental, social, and governance (ESG) best practices.
Elements of National Association of Real Estate Investment Trusts (Nareit)
Advocacy
Nareit capabilities as an advocate for REITs and public real estate companies, addressing them in legislative issues as well as issues of public policy.
A large part of what it does is to illuminate the investing community about REITs, their purpose, and how these investments are managed. Nareit attempts to instruct the community locally and internationally, even stretching out its efforts to incorporate governments.
The organization operates at the highest levels of the U.S. also, different governments, working with them in real estate legislation and policy choices.
Membership
Individuals and corporations can become members of Nareit. A portion of the benefits for corporate members incorporate exclusive access to investors, increased visibility, advocacy across all levels of government, access to extreme front line real estate research, and savings and events simply accessible to members.
Individual members should be stakeholders in the REIT industry. With north of 1,200 members, Nareit's individual membership gets access to investment research, members savings, and visibility enhancement. Individual membership isn't limited to REIT owners and can incorporate the professionals who support, service, and invest in REITs.
Corporations must be REIT-situated in the U.S., a REIT in a country with REIT legislation, or a listed real estate company to turn into a member of Nareit.
Research and Outreach
Nareit is the leading producer and sponsor of research, publications, and gatherings on REIT investment, and furthermore distributes news, data, and industry viewpoints. For example, Nareit distributes:
- Real Estate Investment SmartBrief, a daily executive news rundown
- REIT: Real Estate Investment Today, an every other month magazine zeroed in on the REIT approach to real estate investment
- REITWatch, which is a month to month publication that gives a statistical gander at the industry
It likewise gathers a group of indexes, which give real-time and month to month refreshes on publicly-traded REITs, equity REITs, and mortgage REITs.
The organization additionally praises the accomplishments and contributions of its members and industry professionals with the annual Investor CARE (Communications and Reporting Excellence) Awards for corporate greatness in investor relationships, Leader in the Light Awards for member companies showing unrivaled sustainability rehearses, and the Leadership and Industry Achievement Awards for outstanding contributions to the industry.
History of National Association of Real Estate Investment Trusts (Nareit)
On Sept. 14, 1960, President Dwight D. Eisenhower marked legislation that made another approach to income-delivering real estate investment. The move would assist more modest investors with exploiting investing in the real estate market something generally just accessible for large, commercial elements. The National Association of Real Estate was incorporated the next day as a method for addressing REITs and real estate-based investment companies.
The organization was referred to in the industry as NAREIT until 2017 when it was rebranded as Nareit. The organization said it rebranded to reflect changes inside the industry, outstandingly "another period for our industry defined by the presentation of the new GICS Real Estate Sector and the growth and globalization of the industry." According to Nareit, changing its brand identity allowed it to instruct the investment industry about REITs.
Highlights
- The organization advocates in the U.S. also, foreign governments, helping shape policies and legislation.
- Nareit addresses a broad mix of REITs that own trillions of dollars of real estate assets.
- Being a member of Nareit means approaching industry-leading experiences, access to member-just events, and certain savings products.
- Nareit addresses a wide range of parts of the REIT and real estate investment industry.
- Membership is available to individuals and corporations, despite the fact that a few requirements, for example, are being a professional in the industry, investing in REITs, and others.
FAQ
Are REITs a Good Investment?
REITs can be a wise investment relying upon the investor's individual objectives and tolerance for risk. REITs, for some, can be an effective method for investing in the real estate industry while staying liquid and without the overhead of the classic real estate investment: the home purchase. REITs commonly pay substantial dividends yet can vary in prices quickly.
What Is the Average Return on a REIT?
There is no average return measurement for REITs principally in light of the fact that they operate in various sectors. For instance, a REIT with broad exposure to all commercial real estate might fare better on the off chance that there was a dip in mortgage income. In this scenario, a broader REIT would outperform a REIT invested in residential mortgages.
What Are the Disadvantages of a REIT?
A portion of the disadvantages of a REIT are high expense ratios, lack of investor info, and lack of proprietor started property enhancement. Investors trade the higher liquidity of a REIT with claiming a property outright. In any case, that investor can't make enhancements, for example, adding another rooftop or electrical to improve the property's value. REITs themselves can sometimes experience the ill effects of a lack of market liquidity, yet those issues will generally be saved for more modest REITs that are not intensely traded.
Do REITs Do Well During a Recession?
A REIT can perform well during a recession assuming it invests in real estate holdings that are not impacted by the market downturn. A few areas of real estate can outperform the general market during a recession. However, REITs would underperform compared to a market index (like the S&P500) on the off chance that a recession hit the real estate sector particularly hard.
Are REITs Better Than Stocks?
REITs can be better than stocks here and there, and less appealing in others. Investors normally don't pick either. All things considered, they frequently opt for a combination of both and consider their REIT exposure their exposure to the real estate market without contemplating the overall equities market. Despite the fact that they are traded on similar exchanges, REITs fill various needs, and a REIT is more like an exchange traded fund (ETF) than an individual company's stock.
