REITs For Dummies (For Dummies (Business & Personal Finance))

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond This Book
	Where to Go From Here
Part 1 Getting Started with REITs
	Chapter 1 Who Wants to Be a Virtual Landlord?
		Commercial Real Estate for the Masses
		REITs Do the Work for You
		Get Paid While You Sleep
		Size Does Matter
		Focusing on Fundamentals
		REITs on the Street
		A Slice for All Types
	Chapter 2 It All Starts with Real Estate
		Land: They’re Not Making It Anymore
			Supply and demand
			Every business uses real estate
		Introducing Homer Hoyt and Real Estate Cycles
			Recognizing the cycles most businesses go through
			Looking at the long cycles of real estate
		The Concept of Appreciation and Depreciation
			Appreciating appreciation
			Appreciating depreciation
		Rental Income Is the Key to Value Creation
			Rents and pricing power
			The power of compounding
	Chapter 3 Unlocking the First Level of the REIT Universe
		How REITs Came to Be
			The early years
				The REIT Act of 1960
				Tax Reform Act of 1976
				Tax Reform Act of 1986
			Modern REITs and UPREITs
				REIT Modernization Act
				Housing and Economic Recovery Act of 2008
			The 21st century
		REITs Were Made for You and Me
			The REIT rules
			REITs’ primary investment attributes
				Diversification
				Transparency
				Liquidity
				Performance
				Dividends
		BDCs and MLPs: REITs’ Kissing Cousins
			Business development companies
			Master limited partnerships
	Chapter 4 Understanding How REITs Make Money
		How REITs Raise Money
			Initial public offerings
			Debt financing
		Equity REITs: The Brick-and-Mortar Landlords
			Types of equity REITs
			The great American REIT rally
		Unlocking the Mystery Behind Preferreds
		Welcome to the High-Yield mREIT Club
			The residential mREIT model
			The commercial mREIT model
		Every REIT Isn’t Traded on the Stock Market
			Private REITs
			Public non-listed REITs
	Chapter 5 REITs around the Globe
		The Long and Short of It
		Oh, the Places You Can Go and the Money You Can Make
		Keeping the “Real” in Global Real Estate
		The Countries and Regions with REITs — So Far
			Combing through the G7 countries
				Canada
				France
				Germany
				Italy
				Japan
				United Kingdom
			The other REIT-permitting countries on parade
				Argentina
				Australia
				Bahrain
				Belgium
				Brazil
				Bulgaria
				Chile
				China
				Costa Rica
				Dubai
				Finland
				Greece
				Hong Kong
				Hungary
				India
				Ireland
				Israel
				Kenya
				Malaysia
				Mexico
				Netherlands
				New Zealand
				Nigeria
				Oman
				Pakistan
				Philippines
				Portugal
				Puerto Rico
				Saudi Arabia
				Singapore
				South Africa
				South Korea
				Spain
				Taiwan
				Turkey
				Vietnam
		It Ain’t Over ’til It’s Over . . . and It Ain’t Over Yet!
Part 2 Exploring the REIT Universe
	Chapter 6 Exploring the Primary REIT Sectors
		Understanding REIT Property Classifications
		Industrial REITs: Warehouses and More
		Apartment REITs: Living in a REIT Paradise
		Office REITs: A Diminished Necessity
		The More for Less Net-Lease Landlords
		Retail: The Kingdom of Thing-dom
			The once-mighty mall REIT sector
			Outlet centers: Everyone likes a bargain
			Shopping for shopping centers
	Chapter 7 Exploring Alternative REIT Sectors
		REITs on the Cutting Edge: Technology REITs
			Calling all cell tower REITs
			Data centers: The digital dynamos
		Essential Healthcare Properties on Parade: Healthcare REITs
		Storing Stuff and Lots of It: Self-Storage REITs
		Checking Into Lodging REITs
		Residential REITs: Building the Case for (Rental) Homes and Housing
			Becoming a tree landlord
			Homeownership on the cheap: Manufactured housing
			The essential shelter play: Single-family rentals
		In a Class by Themselves: Specialty REITs
			Farming REITs
			Billboard REITs
			Cannabis REITs
	Chapter 8 Putting on Your REIT Analyst Hat
		Becoming a Virtual Rent Collector
			The scoop on net operating income
			Understanding cap rates
			Internal rates of return on review
		REIT Earnings Metrics
			FFO to the rescue
			The dawn of AFFO
			A worthwhile “FAD” to keep in mind
			Calculating NAV
		Putting Weighted Average Cost of Capital on the Scale
		The Cost of Buying In and Buying Up
		Looking at REIT Balance Sheets
			Conservative and consistent dividends
				Not all dividends are the same
				Watch out for sucker yields
			REIT preferreds
		What a Strong REIT Balance Sheet Looks Like
			Interest coverage ratios
			Debt maturity
			Variable-rate debt
			REIT credit ratings
		The Case for Buying Bonds
	Chapter 9 Separating the Wheat from the Chaff
		Management Works for You
			Minding your management
			Avoiding the bad actors
		Internal versus External Management
		What About Short Sellers?
			A REIT short that actually worked
			A short caught with its pants down
		Activist Investors on the Loose
		Following the Money: Executive Compensation
		Passing on the Crown
Part 3 REITs for All Investors
	Chapter 10 Building a Smart REIT Portfolio from the Ground Up
		What Type of REIT Investor Are You?
			Know your REIT psychology
			REIT temperament
		Looking at REIT Types
			Growth REITs
			Value REITs
			Income REITs
		Building a Diversified REIT Portfolio
			My anchor-and-buoy model
			Your house doesn’t count
		The Taxation Situation
			Ordinary income
			Qualified business income
			Long-term capital gains or losses
			Return of capital
		Individual Retirement Accounts
			Traditional IRA
			The Roth IRA-lternative
	Chapter 11 The Big Fish REIT Investors
		Why Institutional Investors Love REITs
			The geographic diversification is “out of this world”
			REITs create a good balance between old and new
				REITs help fill the asset allocation gaps
				REITs enhance ESG attributes
		A Peek at the Top Institutional Players
			Pension funds
				REITs roar back
				Pension funds flock to REITs
			University endowments and the “Yale Model”
			Private equity firms
		Signs of the Times
	Chapter 12 Pressing the REIT Easy Button
		Give Me an E . . . Give Me a T . . . Give Me an F! Give Me REIT ETFs!
			Why ETFs are attractive to investors
			How ETFs can help you diversify
		Breaking Down REIT ETFs by Category
			Mega market cap weightings
			Global REIT exposure
			Specialty REIT ETFs
			Preferred REIT ETFs
		The ETF Game Is All About Scale
		REIT Mutual Funds
		REIT Closed-End Funds
Part 4 The Part of Tens
	Chapter 13 More Than Ten FAQs About REITs
		How Do REITs Perform in a Recession?
		Why Are REITs Good Inflation Hedges?
		Why Invest in REITs Instead of the Next Big Thing?
		How Many REITs Should I Own at a Time?
		Does My House Count toward My Real Estate Holdings?
		Should I Invest in REITs That Just Went Public?
		What Is the Best Way to Get Rich Owning REITs?
		When Should I Dollar-Cost Average?
		Should I Own REITs That Pay Monthly?
		What’s the Best Way to Get Started?
		What Are Other REIT Resources to Consider?
		What’s a SWAN Stock?
	Chapter 14 Ten Mistakes to Avoid When Investing in REITs
		Obsessing Over Just One REIT
		Obsessing Over a Single Sector
		Owning Nothing but REITs
		Investing Too Heavily (Or at All) In mREITs
		Trying to Time the Market
		Buying Overvalued REITs
		Falling for Value Traps
		Falling for Sucker Yields
		Considering REITs to Be Fixed-Income Investments
		Forgetting That the CEO Works for You
Appendix A Assessing Weighted Average Cost of Capital
	A Textbook Example of Cost of Capital at Work
	Don’t Be(lieve) a Sucker (Yield)
Appendix B Determining Net Asset Value
	Calculating NAV: A Four-Step Process
		Step 1: Use NOI to determine fair market value
		Step 2: Calculate NAV
		Step 3: Subtract debt and preferred stock to arrive at NAV
		Step 4: Divide by diluted shares
	An Expert’s Take on NAV
Appendix C Calculating Adjusted Funds from Operations
Glossary
Index
EULA