Real Estate Investment Trusts (REITs) are a bridge between two worlds, the
capital markets at one end and the real estate sector on the other, leading to
a unique risk/return profile. They bear benefits neither of which can realize
standing alone, resembling a hybrid between real estate and equity.
REITs invest directly in property and pass on almost all earnings to their
shareholders as dividends. By distributing most of their profits, REITs get special
tax treatment and avoid corporate income tax. Because of that REITs have
proven very attractive to investors: Their returns have beaten most...