A History of REITs and REIT Performance

The first REITs born in early 1960s, which ranges in size from $10 million to $50 million and their property management functions were handled by outside management companies and their combined assets were only about $200 million

2015

Scholarcy highlights

  • The first REITs born in early 1960s, which ranges in size from $10 million to $50 million and their property management functions were handled by outside management companies and their combined assets were only about $200 million
  • During the 1980s, when investors were seeking the tax shelters offered by limited partnerships, real estate prices became inflated, this limited REITs’ ability to grow through attractive acquisitions
  • REITs’ performance improved substantially in the early 1990s as they were able to pick up properties at bargain prices resulting from the bear market in real estate that began in the late 1980s
  • In 1996 and 1997, institutional money managers started to invest in REITs, and the trend of public securitization of real estate had become indelibly established
  • REITs responded quickly to the great recession and troubled capital markets, raising equity, selling assets, addressing debt maturities and positioning themselves well for the recovery

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