U.S. REITs: REIT primer, 17th edition: a comprehensive handbook for investors

Research evidence excerpt

U.S. REITs: REIT primer, 17th edition: a comprehensive handbook for investors

Accessible version

U.S. REITs

REIT primer, 17th edition: a comprehensive

handbook for investors

Primer

Overview of REITs 22 May 2026

This BofA REIT primer provides an overview of the U.S. REIT industry and discussion of Equity

the sector’s unique quarterly reporting standards and methods of valuation. The primer United States

is divided into separate sections for easy reference: 1) basic structure of a REIT, 2) types REITs

of REIT subsectors that exist, 3) evolution of the industry, 4) REIT earnings & valuation,

5) distributions and 6) FAQ. We include an appendix of REIT-specific terms & acronyms. Jeffrey Spector Research Analyst

BofAS

REITs provide investors access to commercial real estate +1jeff.spector@bofa.com646 855 1363

A REIT, or a real estate investment trust, is a company that owns income-producing real Jana Galan

estate. REITs were formed in 1960 by Congress as a way for small investors to obtain Research Analyst

ownership in commercial real estate. REITs currently account for approximately 20% of BofAS+1 646 855-5042

the institutionally-owned commercial real estate in the US. Most REITs follow an active, jana.galan@bofa.com

hands-on, owner-and-operator model rather than simply owning a collection of assets, Samir Khanal

Research Analyst

as was common in the early years. Collecting rent remains the main source of revenue BofAS

for REITs. Internal growth is driven by occupancy, rent increases, margin improvement, +1 646 855 1497

samir.khanal@bofa.com

asset redevelopment, and external growth through acquisitions/ground-up development.

Farrell Granath

BofASWhy publicly traded REITs are attractive

farrell.granath@bofa.com