What is typically included in a real estate investment trust’s portfolio?

A real estate investment trust (REIT) typically includes a variety of real estate assets, such as commercial, residential, and industrial properties, in its portfolio. This diversity allows REITs to spread risk across different types of properties and sectors within the real estate market, which can provide more stable income streams and investment returns.

By investing in multiple types of properties, REITs can capitalize on the different performance characteristics and market dynamics associated with each segment. For example, commercial real estate often has different demand cycles compared to residential properties, and industrial properties can benefit from trends such as e-commerce growth.

This variety also allows investors in REITs to gain exposure to different facets of the real estate market without the need to directly own or manage the properties themselves. The flexibility of including various property types is a fundamental aspect of a REIT's operational strategy.