Actionable news
0
All posts from Actionable news
Actionable news in RQI: COHEN & STEERS QUALITY Income REALTY FUND Inc COMMON SHARES,

The New 11th S&P Sector: Equity REITs

Summary

September 1st will be an historic day for real estate investors.

Introduction of new S&P Real Estate sector bolsters the value of REITs and REIT market analysis.

Learn the basics and how to stay up to date.

As of September 1st an 11th sector will be introduced by the S&P Dow Jones Indices and the Global Industry Classification Standard (GICS). The GICS has long served as the dominant classification system for the world stock market, and this landmark debut of a new sector is bound to have profound impacts. The reorganization of real estate stocks into a new sector has investors wondering how to best leverage this market transfiguration.

My name is Elliott Froissart, an analyst for Easan Katir Data Science & Wealth Management and a UC Davis Community & Regional Development graduate. I am exhilarated that my interests in urban land development and stock markets have collided. In the following months, I will track, analyze and report the market changes related to the freshly minted real estate sector, so that we can all benefit from the changes to come. In each article, we will explore crucial and relevant information about real estate.

What is a REIT?

Since real estate stocks will shed their status as a niche in the larger financial sector on September 1st, it is important to know how real estate stocks work. Property management firms, hotels, hospitals, and assorted real estate moguls have floated these securities since President Eisenhower signed the legislation creating REITs in 1960. Since then, investors diversified their portfolios with REITs. Simply put, REITs are financial organizations that generate their revenue and dividend yield by investing in income-producing real estate, and are required to pay 90 percent of income to shareholders. Dawn Wotapka...


More