Questions: I have 3 questions about REITs

Questions: I have 3 questions about REITs

I’ve yet to buy any REITs or REIT ETFs, but the yield is looking very attractive. 3 questions… 1) Do you all who invest in them do so for both a growing income source, as well as for long term appreciation of NAV, or are you mostly in them for the yields only? 2) As far as ETFs go, I can’t seem to wrap my mind around buying them due to a common large holding being that of a company that owns shopping malls, something that Appears to have a very uncertain future at this time. 3) And, if I may, is having REITs in a nonqualified account a cause for a lot of extra work at tax time? I realize REIT dividends aren’t qualified, but Unlike MLPs, do the REITs send out filing info in January or Feb instead of waiting? A lot of extra filing work? Thanks for any info you care to share!

Jerry Leedom: try looking at VNQ, a diversified approach to REITs

Austin Allgood: That’s what I buy

Amanda N Larry Anderson: Austin Allgood you and Jerry ok with the percentage held in SPG? Thanks

Jerry Leedom: Amanda N Larry Anderson SPG is a concern, but I’m willing to accept its representation in a position (VNQ) that itself is less than 4% of my overall portfolios. I have more than 50 long positions overall.

Amanda N Larry Anderson: Jerry Leedom very good, I understand! Thank you.

Iain Toft: I’m in vnq and vnqi

Tecunseh Amos: reits are sensitive to the lending rate the higher interest rates the more negatively the share price is affected.the upside the higher the uncertainty in the market the higher their prices go. REITS are bought generally for income. realty Corp is the prime example of what you want in REITs.since interest rates are projected to be going up reits prices are going to be going down and raising dividend yield. which is a great time to build a position.o, kim, and dea are 3 examples of different kinds of REITs to look into.etfs can be thought of as a portfolio. each is a different animal because they have different combinations of companies, hedging via options, leverage and is for those who very familiar with stock market.overall reits are great for the beginner because they are steady dividend and most of the time steady share prices.5% yield is a good rule of thumb… higher yield means companies have high amount of money going out and is stressed to meet growth, upkeep and the actual business… ORC is a great example of something to stay away from

Amanda N Larry Anderson: Thank you for sharing, Amos. Appreciate your help! Larry

Chuck Parrish Jr: I own my REITs in a tax deferred account so I don’t know answer to tax question I don’t own any ETFsI own REITs for both income and appreciation but I don’t care about share prices right now. REIT share prices are being affected by the 10 year % but REIT earnings are doing great!So I’m taking advantage of the short sightedness and adding to my REITs

Amanda N Larry Anderson: Thanks again, Chuck. Your last paragraph really hits home. So in an IRA or ROTH IRA, no special mailings/earnings info sent by REITs at tax time?

Chuck Parrish Jr: Amanda N Larry Anderson nope

Steven Heller: Amanda N Larry Anderson not in a tax advantages account.

Amanda N Larry Anderson: Steven Heller thanks Steven.

Chuck Parrish Jr: Amanda N Larry AndersonIf you are going to buy REITs make sure you buy quality ones. Not all REITs are created equal there’s ones that are sucker yields.

Chuck Parrish Jr: Amanda N Larry AndersonDo you happen to go on

Stock Market Insights | Seeking Alpha

Chuck Parrish Jr: Amanda N Larry AndersonFollow Brad ThomasHe’s an author on seeking alpha that writes about REITs

Steven Groen: I don’t own ETF‘s but I just bought SKT REIT. It’s in my RothIRA. No tax issues.

Harsha Nagarajarao: In trading accounts they are taxed as ordinary income. In tax deferred or ROTH no such consequences.

Tecunseh Amos: a small part of the dividend is considered return of capital and is taxed as capital gains when the asset is sold. the rest is taxed as ordinary income.consult a cpa for the finer details

Jeff Ruecker: Buy them for the yield, any cap – apprise is a bonus!

Harsha Nagarajarao: Other sector sensitive to raising interest rates are utilities. Stable ones with good dividends are SO, DUK, D, PPL, ED etc…

Jeff Ruecker: lnt, fe..

Lisa Moen Armstrong: I’ve held two REIT’s long term and I just get my tax statement from fidelity with all my dividend info on it. I use a CPA, so no extra work for me. It comes in plenty of time to file.

Amanda N Larry Anderson: Thank you, Lisa

Amanda N Larry Anderson: Lisa, so that I understand, your REITs are held in a taxable account, and you get the 1099 Div in plenty of time to file? Thanks again!

Lisa Moen Armstrong: Amanda N Larry Anderson correct.

Amanda N Larry Anderson: Lisa Moen Armstrong thank you!

Chris Bassett: REIT dividends are reflected on your 1099 from your brokerage. There is no additional tax documentation like MLPs where the company issues a K-1 for you to calculation your tax liability. If you invest in foreign MLPs you get a 1099 instead of a K-1. Also note that a K-1 may trigger additional scrutiny if you are applying for a mortgage.

Amanda N Larry Anderson: Thanks so much! This really helps clarify.

Shane Martin: Apple hospitality reit is nice 😊

Paul Poirier: There is a gentleman named Brad Thomas who writes for Seeking Alpha and his focus is on REITs. I follow him and enjoy reading his analysis on REITs. Like with all things investment related please make sure to do your own due diligence and not buy into the hype you see posted online everyday. Seeking Alpha a great free website to get information about a lot of different aspects on investing.

Steve Goddard: I invest for both yield and cap app. NRZ is one I follow every day.

Chad Morgan: I added some REITs in my tax qualified accounts as part of an overall diversified portfolio over the last few months to hold long term. Above average overall total returns is my goal. I own APTS O AMT OHI STAG.

Iain Toft: The biggest distinction in reits is whether they own bricks and mortar, or are mortgage trading outfits dressed as a reit.As they are tax inefficient die you requirement of paying dividends, I trade them in the most tax efficient accounts, for me that is Roth.

Bing Cloud: You can consider Tangers (SKT) and Ventas. Some healthcare REIT will be ok for diversification. I try to keep REIT sector in our portfolio about 10%. I would think REIT will underperform since we are in the age where interest rates will start rising.

Michael Pack: I have half of my retirement acct in REIT’s. They are in tax def accts. I own O, OHI, Roic, and ERP. I enjoy the prices going up but got into them because of the dividends. REIT’s have allowed me to catch up much quicker.

Jeff Ruecker: kkr, I HAVE BEEN WATCHING, waited too long — they bought fleet farm a while back, some we win , some we lose?

Dan Weston: REITs are shown in red on this Asset Class Returns chart:

Annual Asset Class Returns • Novel Investor

Chuck Parrish Jr: Exactly the right time to buy!

Nick Lee: Likewise, here is the individual Sector returns.

Annual S&P Sector Performance • Novel Investor

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