When investors evaluate a REIT, they often focus on the dividend yield — but yield alone is only part of the story. Total return is the complete measure of what an investment earns: it combines the income a REIT pays out with the change in the value of its shares. For REITs, both pieces matter. The dividend component has historically been a large share of long-run REIT total return, which is a direct consequence of the structure — a REIT must distribute at least 90% of its taxable income, so most of its earnings flow to shareholders rather than being retained. The appreciation component reflects growth in the underlying real estate's income and shifts in how the market values that income. And reinvesting the distributions — letting them buy more shares — is what turns a stream of income into compounding wealth over time. This guide explains the components of REIT total return, the role of dividends, what drives appreciation, how reinvestment compounds, and the historical context — keeping every return statement general and non-promissory. Note that past performance does not guarantee future results; verify the current rules and your situation with your advisors.
Components of REIT Total Return
REIT total return has two components: the income the REIT distributes and the change in the price of its shares. Income is the dividend stream — the cash distributions a REIT pays out of the rents (or mortgage interest) it earns. Price appreciation is the gain (or loss) in the share value between when you buy and when you measure or sell. Add the two together — distributions received plus the change in share price — and you have total return, the full measure of what the investment earned.
This framing matters because yield alone can mislead. A REIT with a high current yield but a falling share price may deliver a poor total return, while a REIT with a moderate yield and steady appreciation may do better overall. Conversely, a high total return that comes almost entirely from price gains tells a different story than one driven mostly by income. So total return is the lens that captures both halves — and for REITs, where the income component is structurally large, both halves are usually meaningful. Looking only at the dividend, or only at the price chart, gives an incomplete picture of how the investment actually performed.
So REIT total return is the sum of dividend income and price appreciation, and judging a REIT requires looking at both rather than at yield alone. The components of REIT total return — the dividend income a REIT distributes from its rents or mortgage interest, plus the appreciation (or depreciation) in its share price over the holding period — together form the complete measure of performance. Yield captures only the income half; the price change captures the other. Understanding both components frames everything that follows about what drives each. A REIT's total return is dividend income plus price appreciation, and evaluating a REIT means weighing both, not just the headline yield, because the structure makes income a large but not exclusive part of the result.
The Role of Dividends
Dividends play a central role in REIT total return — and that's by design. Because a qualifying REIT must distribute at least 90% of its taxable income to shareholders each year (and most distribute close to 100% to eliminate corporate tax entirely), the income component is structurally large. A REIT can't easily retain earnings to compound internally the way a growth stock might; instead it pays most of them out. As a result, the dividend stream has historically been a substantial portion of the long-run total return that REITs have delivered.
This income emphasis shapes how REITs behave as investments. The regular, sizable distributions can provide a steady cash component to a portfolio, and that income tends to be less volatile than share prices, which swing with the market. But the same structure means REITs depend on raising outside capital to grow, since they retain little. And the dividends aren't guaranteed — they can be cut if property income falls, and they fluctuate with the underlying real estate. So the central role of dividends is a feature of the REIT structure, not a promise: it makes income a large part of the return, but that income carries real risk and can change.
So dividends are a structurally large part of REIT total return because the 90% distribution rule forces most earnings to be paid out — but they are not guaranteed. The role of dividends in REIT total return is central: the requirement to distribute at least 90% of taxable income (with most REITs paying out nearly all of it) makes the income component large by design, and dividends have historically formed a substantial share of long-run REIT returns. That income can steady a portfolio, though it depends on the underlying real estate and can be cut. Understanding the dividend's central role explains why income matters so much to REIT returns. Dividends are a large, structurally driven part of REIT total return, providing steady income — but they fluctuate with property performance and are never promised.
The 90% distribution rule is the reason income looms so large in REIT returns: a REIT pays most of its earnings out, so the dividend isn't a side benefit — it's the engine.
Price Appreciation Drivers
The appreciation component of REIT total return is driven by two forces: growth in the income the underlying real estate produces, and changes in how the market values that income. The first force is operational — when a REIT raises rents, lifts occupancy, develops or acquires accretively, and controls expenses, its net operating income (NOI) and funds from operations (FFO) grow, and a stream of growing income is worth more. So rising property-level earnings tend to support a rising share price over time.
The second force is valuation — specifically, changes in cap rates (the rate at which the market capitalizes property income into value) and in the multiples investors are willing to pay for REIT cash flows. When cap rates fall (often as interest rates decline or investor demand for real estate rises), the same income is valued more highly, lifting prices; when cap rates rise, valuations compress. This is why REITs are interest-rate-sensitive: rate moves influence the discount rate applied to their income. So appreciation reflects both how fast the income grows and how the market chooses to value it — and the two can pull in opposite directions in any given period.
So REIT price appreciation is driven by growth in NOI and FFO (the operational engine) and by changes in cap rates and valuation multiples (the market's pricing of that income). Price appreciation drivers for REITs are twofold: organic and acquisitive growth in the underlying income (rising rents, occupancy, accretive deals, expense control lifting NOI and FFO) and shifts in valuation (cap-rate and multiple changes, heavily influenced by interest rates and investor demand). Growing income supports higher prices; falling cap rates amplify them, while rising rates compress them. Understanding both drivers explains why REIT prices move as they do. REIT appreciation comes from income growth (NOI/FFO) and valuation changes (cap rates and multiples, tied closely to interest rates) — the two main forces behind a REIT's share-price movement over time.
Reinvestment & Compounding
Reinvesting distributions is what turns a REIT's income stream into compounding growth over time. When you take the dividends a REIT pays and use them to buy more shares — often automatically through a dividend reinvestment plan (DRIP) — each reinvested dollar then earns its own dividends and participates in any appreciation. Over many years, this compounding effect can become a large part of the total return, because the share count grows steadily and the income base grows with it, even before any change in the share price.
The power of reinvestment is greatest over long horizons and is amplified by the size of REIT distributions — and since REITs pay out most of their income, the reinvested amount is substantial. An investor who spends the dividends collects income but forgoes this compounding; an investor who reinvests builds a larger position that generates more income and more potential appreciation. The trade-off is straightforward: reinvestment favors long-term wealth accumulation, while taking the cash favors current income. Neither is wrong — it depends on whether you need the income now or are investing for growth. So how you handle distributions materially shapes your long-run total return.
So reinvesting REIT distributions compounds returns over time, and because REIT payouts are large, the compounding effect can be significant for long-term investors. Reinvestment and compounding work hand in hand for REITs: directing distributions back into more shares (often via a DRIP) lets each reinvested dollar earn its own income and appreciation, so the position and its income base grow steadily. Because REITs distribute most of their earnings, the reinvested amounts are sizable, making compounding a meaningful driver of long-run total return — for investors who don't need the cash now. Understanding reinvestment shows how income becomes growth. Reinvesting REIT dividends compounds returns over long horizons, turning a large income stream into a growing position — a powerful effect for long-term investors, though those needing current income may take the cash instead.
- REIT total return has two components: dividend income and price appreciation — judge a REIT on both, not on yield alone.
- Dividends are a structurally large part of REIT total return because the 90% distribution rule forces most earnings to be paid out — but they aren't guaranteed.
- Appreciation is driven by growth in property income (NOI/FFO) and by changes in cap rates and valuation multiples, which tie closely to interest rates.
- Reinvesting distributions compounds returns over time; because REIT payouts are large, this compounding can be a meaningful part of long-run results.
Historical Return Context
Looking at the broad sweep of history helps set realistic expectations for REIT total return — as long as it's kept general and non-promissory. Over long periods, REITs as an asset class have historically delivered competitive total returns relative to other asset classes, with the income component contributing a substantial share of those returns. That track record reflects the combination of large, regular distributions and the appreciation that growing property income and favorable valuations can produce over time. But history describes the past, not the future.
It's essential to treat any historical-return statement as context, not a forecast. Past performance does not guarantee future results: returns vary widely by period, by property sector, by interest-rate environment, and by individual REIT, and there have been stretches when REITs underperformed or lost value. REIT share prices and distributions can fluctuate, and rising rates, recessions, or sector-specific stress can pressure both income and valuations. So the realistic expectation is a blend of income and moderate growth, accompanied by real volatility — not a smooth or guaranteed path. The history is encouraging as general context but says nothing certain about what any particular REIT will do.
So REITs have historically delivered competitive long-run total returns with income as a large contributor, but past performance doesn't guarantee future results, and realistic expectations should pair income and moderate growth with genuine volatility. The historical return context for REITs is best held loosely: as an asset class, REITs have historically produced competitive long-run total returns, with dividends a substantial part — but returns vary by period, sector, rate environment, and individual REIT, and the past is no promise. The sensible expectation is income plus moderate growth with real volatility. Understanding this context sets grounded, non-promissory expectations. REITs have historically delivered competitive long-run total returns led substantially by income, but past performance guarantees nothing — expect a mix of income and moderate appreciation with real volatility, not a certain outcome.
Putting Total Return Into Practice
Putting the total-return framework into practice means evaluating a REIT on the full picture rather than on a single number. Start with the income: look at the dividend, but also at whether it's well-covered by FFO and AFFO and whether the underlying property income is stable or growing — a high yield resting on shaky coverage is a warning, not a strength. Then consider the appreciation potential: is the REIT growing its NOI and FFO, and how might cap rates and rates affect its valuation? The two together tell you what kind of return profile to expect.
Practical use also means matching the profile to your goal and time horizon. If you want current income, weight the dividend and its sustainability; if you're investing for long-run growth, lean on reinvestment and the REIT's ability to compound income over time. And size the position for the volatility — REIT prices move, sometimes sharply, even when the income holds steady. Diversifying across sectors and REIT types smooths some of that, but doesn't remove it. So a total-return mindset turns a yield-chasing decision into a more complete, expectations-aligned one.
So using the total-return framework means weighing income (and its coverage and stability) together with appreciation potential (income growth and valuation), then matching the profile to your goals and sizing for volatility. Putting total return into practice means evaluating a REIT holistically: assess the dividend and its coverage by FFO and AFFO, gauge the growth in property income and the valuation backdrop, decide whether reinvestment or current income fits your goal, and size the position for real price volatility. Diversification across sectors and types helps but doesn't eliminate risk. Understanding this turns total return from a concept into a decision framework. Applying the total-return lens means judging income quality and appreciation potential together, aligning the profile with your horizon, and sizing for volatility — a more complete approach than chasing yield alone.
Yield tells you what a REIT pays today; total return tells you what it actually earns — and only the second number reflects whether the income is durable and the price is heading the right way.
How Baker 1031 Helps You Understand REIT Total Return
Baker 1031 Investments helps investors understand REIT total return — the two components of income and appreciation, the central role dividends play, what drives appreciation, how reinvestment compounds, and the historical context — so you can set realistic, non-promissory expectations and decide whether a REIT's return profile fits your goals.
REIT and non-traded-REIT interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review — non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage accounts. We help you read a REIT's return profile holistically (income and its coverage, appreciation potential, and the rate and valuation backdrop), weigh reinvestment versus current income against your goals, and access suitable offerings when appropriate. Baker 1031 does not provide tax or legal advice; your CPA handles how REIT distributions are taxed in your situation. We're candid that REIT prices and distributions fluctuate, that historical returns are context rather than forecasts, and that past performance does not guarantee future results — no yields or returns are ever promised. Our role is to help you understand total return clearly, set grounded expectations, and invest only when suitable for your goals and risk tolerance.
Frequently Asked Questions
What is REIT total return?
REIT total return is the complete measure of what a REIT investment earns over a period: it combines the income the REIT distributes (its dividends) with the change in the value of its shares (price appreciation or depreciation). Add the distributions you received to the gain or loss in the share price, and you have total return. This is a more complete measure than yield alone, which captures only the income half. For REITs, both halves matter — the income component is structurally large because a REIT must distribute at least 90% of its taxable income, while appreciation reflects growth in the underlying property income and changes in how the market values that income. So a REIT with a high yield but a falling price may deliver a weak total return, while one with a moderate yield and steady appreciation may do better overall. Judging a REIT on total return rather than yield alone gives the full picture of how it actually performed.
What are the two components of REIT total return?
The two components are dividend income and price appreciation. Dividend income is the cash a REIT distributes from the rents (or mortgage interest) it earns — and because a REIT must pay out at least 90% of its taxable income, this component is structurally large. Price appreciation is the change in the value of the REIT's shares over your holding period, which can be positive or negative. Total return adds the two: distributions received plus the change in share price. Both components are usually meaningful for REITs, but they don't always move together — a REIT can pay a strong dividend while its price falls, or appreciate sharply on modest income. That's why looking only at the dividend, or only at the price chart, gives an incomplete picture. So REIT total return is income plus appreciation, and a sound evaluation weighs both halves rather than focusing on one. This framing keeps yield in proper perspective as only part of the result.
Why are dividends such a big part of REIT total return?
Dividends are a large part of REIT total return because of the REIT structure itself. To qualify as a REIT and avoid corporate-level income tax, a company must distribute at least 90% of its taxable income to shareholders each year — and most REITs distribute close to 100% to eliminate corporate tax entirely. This means a REIT pays out most of its earnings rather than retaining them to compound internally, so the income component is structurally large by design. As a result, dividends have historically formed a substantial share of the long-run total return that REITs have delivered. The trade-off is that REITs retain little, so they grow largely by raising outside capital. It's important to remember that the dividends aren't guaranteed — they depend on the underlying real estate and can be cut if property income falls. So the 90% rule makes income a central, structurally driven part of REIT returns, but that income still carries real risk and can change over time.
What drives REIT price appreciation?
REIT price appreciation is driven by two main forces. The first is growth in the income the underlying real estate produces — when a REIT raises rents, improves occupancy, develops or acquires accretively, and controls expenses, its net operating income (NOI) and funds from operations (FFO) grow, and a stream of growing income tends to be worth more, supporting a higher share price. The second is valuation — changes in cap rates (the rate at which the market capitalizes property income into value) and in the multiples investors will pay for REIT cash flows. When cap rates fall (often as interest rates decline or demand for real estate rises), the same income is valued more highly, lifting prices; when cap rates rise, valuations compress. This second force is why REITs are interest-rate-sensitive. So appreciation reflects both how fast the income grows and how the market chooses to value it — and the two can pull in opposite directions in a given period. Understanding both helps explain why REIT prices move as they do.
How does reinvesting dividends affect total return?
Reinvesting dividends compounds your total return over time. When you use the distributions a REIT pays to buy more shares — often automatically through a dividend reinvestment plan, or DRIP — each reinvested dollar then earns its own dividends and participates in any appreciation. Over many years, this compounding can become a large part of the total return, because your share count and income base grow steadily, even before any change in the share price. The effect is amplified for REITs because they distribute most of their income, so the reinvested amounts are substantial. An investor who reinvests builds a larger position that generates more income and more potential appreciation, while one who spends the dividends collects current income but forgoes the compounding. Neither approach is wrong — reinvestment favors long-term wealth accumulation, while taking the cash favors current income, and the right choice depends on whether you need the income now. So how you handle distributions materially shapes your long-run total return.
Have REITs delivered good total returns historically?
As an asset class, REITs have historically delivered competitive long-run total returns relative to other asset classes, with the income component contributing a substantial share of those returns. That track record reflects the combination of large, regular distributions and the appreciation that growing property income and favorable valuations can produce over time. However, it's essential to treat any historical-return statement as general context, not a forecast — past performance does not guarantee future results. Returns vary widely by period, by property sector, by interest-rate environment, and by individual REIT, and there have been stretches when REITs underperformed or lost value. REIT share prices and distributions can fluctuate, and rising rates, recessions, or sector-specific stress can pressure both income and valuations. So while the historical record is encouraging as context, it says nothing certain about what any particular REIT will do. The realistic expectation is a blend of income and moderate growth accompanied by real volatility — not a smooth or guaranteed path.
Is yield the same as total return?
No — yield and total return are different, and confusing them is a common mistake. Yield measures only the income component: it's the dividend a REIT pays expressed as a percentage of its share price. Total return is the complete measure, combining that income with the change in the share price (appreciation or depreciation). So a REIT can have a high yield but a poor total return if its price is falling, or a moderate yield but a strong total return if it's appreciating steadily. A very high yield can even be a warning sign — sometimes it reflects a depressed share price or a dividend that may not be sustainable, rather than a genuinely attractive opportunity. That's why evaluating a REIT on total return, and on whether the dividend is well-covered by FFO and AFFO, gives a fuller picture than yield alone. So treat yield as one input — the current income rate — but judge the investment on total return, which captures both the income and the price movement that together determine what you actually earn.
How do interest rates affect REIT total return?
Interest rates affect REIT total return mainly through the appreciation component, via valuation. REIT share prices are influenced by cap rates and the multiples investors pay for real estate cash flows, and those are closely tied to interest rates. When rates rise, the discount rate applied to a REIT's income tends to rise too, which can push cap rates up and valuations down, pressuring share prices — even if the underlying rents are stable. When rates fall, the reverse can happen, supporting higher valuations. Rates also affect REITs operationally: higher borrowing costs can raise the expense of financing acquisitions and refinancing debt, which can weigh on FFO growth, while mortgage REITs are especially rate-sensitive because their earnings depend on an interest-rate spread. So rising rates can be a headwind for REIT total return and falling rates a tailwind, though the relationship isn't mechanical — property fundamentals, sector, and the reason rates are moving all matter. Understanding this helps explain why REIT prices often react to rate news.
Can a REIT have positive income but negative total return?
Yes — a REIT can pay steady dividends while still producing a negative total return, and this happens when the decline in its share price exceeds the income it distributed. For example, if a REIT pays a solid dividend over a period but its share price falls more than the dividends paid (perhaps because interest rates rose, the sector weakened, or the market repriced its income), the total return for that period is negative despite the positive income. This is precisely why total return, not yield, is the right measure — the income cushions the result but doesn't guarantee a positive one. It's also why a high current yield isn't automatically attractive: if the price is eroding, the income may not be enough to offset it. So positive income and negative total return can coexist, especially over shorter horizons or in rising-rate environments. The lesson is to evaluate both components together and to remember that REIT prices fluctuate, so even a reliable dividend doesn't ensure a gain in any given period. Size and diversify accordingly.
What is the difference between an income REIT and a growth REIT for total return?
Income REITs and growth REITs emphasize different parts of total return. An income REIT prioritizes the dividend — it tends to operate in stable, income-oriented sectors (such as net-lease or healthcare) and aims to pay a high, steady current yield, so more of its total return comes from income and less from appreciation. A growth REIT reinvests more into expanding its portfolio and growing its NOI and FFO, often paying a lower current yield in exchange for faster income growth and potentially more price appreciation, so more of its total return is expected to come from the appreciation side. Neither approach is inherently superior — they suit different goals. An investor seeking current cash flow may favor income REITs, while one seeking long-run growth may favor growth REITs and reinvestment. In both cases, total return is the right yardstick, since it captures the full result regardless of how it's split between income and appreciation. So match the REIT's emphasis to your objective, and judge it on total return, keeping in mind that neither income nor appreciation is guaranteed.
Does reinvesting always make sense?
Not always — whether to reinvest depends on your goals and your need for income. Reinvesting distributions compounds your total return over time and is powerful for long-term investors who don't need the cash now, because it grows your share count, income base, and potential appreciation steadily. But if you rely on the income to meet living expenses or other needs — as many retirees do — taking the distributions as cash makes sense, and reinvesting would defeat the purpose. There can also be tax considerations: reinvested REIT dividends are still generally taxable in the year received (in a taxable account), even though you didn't take the cash, so reinvestment doesn't defer the tax. So the decision turns on whether you're investing for growth (favoring reinvestment) or income (favoring taking the cash), and on your tax situation. Many investors reinvest during accumulation years and switch to taking distributions in retirement. So reinvestment is a powerful tool, but it isn't universally right — match it to your stage, goals, and cash-flow needs, and confirm the tax treatment with your advisor.
How should I set expectations for REIT returns?
Set expectations that pair income with moderate growth and real volatility — and keep them general rather than precise. Historically, REITs as an asset class have delivered competitive long-run total returns, with income contributing a large share, but past performance doesn't guarantee future results, and outcomes vary widely by period, sector, rate environment, and individual REIT. So a realistic expectation is a meaningful income stream plus moderate appreciation over time, accompanied by genuine price swings — not a smooth or guaranteed path. Avoid extrapolating recent strong (or weak) performance into the future, and don't treat a current yield as a promised return. It also helps to think in total-return terms: a REIT's result will be the sum of what it pays and how its price moves, and both can change. Sizing your REIT allocation to fit your overall plan and risk tolerance, diversifying across sectors and types, and investing for an appropriate horizon all help keep expectations grounded. So expect income plus moderate growth with volatility, hold the history loosely, and remember that nothing about future returns is certain.
Are REIT dividends guaranteed?
No — REIT dividends are not guaranteed. While the 90% distribution rule requires a REIT to pay out most of its taxable income, the amount of that income depends on how the underlying real estate performs, and it can fall. If a REIT's rents decline, occupancy drops, expenses rise, or a sector weakens, its income — and therefore its dividend — can be cut. REITs have, at various times, reduced or suspended distributions during stress. So even though REITs are required to distribute most of what they earn, the size of the dividend isn't fixed and can change with conditions. This is why it's important to look at whether the dividend is well-covered by FFO and AFFO and whether the underlying property income is stable, rather than assuming a current yield will persist. It's also why REITs shouldn't be treated as bond-like or as a guaranteed income source. So treat REIT dividends as a structurally large but variable part of total return — meaningful and often steady, but dependent on real estate performance and never promised.
Should REITs be a long-term holding for total return?
For many investors, REITs make sense as a long-term holding when the goal is total return — the combination of income and appreciation — because both the compounding of reinvested distributions and the growth in underlying property income tend to reward longer horizons. Over short periods, REIT prices can be volatile and rate-sensitive, so a long time horizon helps ride through the swings and lets the income and any appreciation accumulate. Reinvesting distributions over many years can make compounding a meaningful part of the result. That said, REITs carry real risk — distributions can be cut, prices and NAVs fluctuate, and sectors can underperform — so any REIT allocation should be sized to fit your overall plan and risk tolerance, and diversified across sectors and types. Publicly traded REITs offer liquidity if your needs change, while non-traded REITs require a genuine long-term commitment. So REITs can be a sound long-term total-return holding within a diversified portfolio, provided you accept the volatility and don't treat past returns as a promise of future ones.
How does Baker 1031 help me understand REIT total return?
We help investors understand REIT total return — the two components of income and appreciation, the central role dividends play, what drives appreciation, how reinvestment compounds, and the historical context — so you can set realistic, non-promissory expectations and decide whether a REIT's return profile fits your goals. REIT and non-traded-REIT interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review; non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage. We help you read a REIT's return profile holistically — income and its coverage, appreciation potential, and the rate and valuation backdrop — and weigh reinvestment versus current income against your goals. Baker 1031 does not provide tax or legal advice; your CPA handles how distributions are taxed in your situation. We're candid that REIT prices and distributions fluctuate, that historical returns are context rather than forecasts, and that past performance does not guarantee future results — no yields or returns are ever promised.
Glossary
- Total Return
- Dividend income plus price appreciation — the complete measure of return.
- Dividend Income
- The cash a REIT distributes from rents or mortgage interest.
- Price Appreciation
- The change in a REIT's share value over the holding period.
- Dividend Yield
- A REIT's dividend as a percentage of its share price (income only).
- 90% Distribution Rule
- The requirement to pay out at least 90% of taxable income.
- Net Operating Income (NOI)
- Property revenue minus operating expenses, before debt service and depreciation.
- Funds From Operations (FFO)
- A core REIT earnings measure adding depreciation back to net income.
- AFFO
- Adjusted FFO, refined to better reflect distributable cash flow.
- Cap Rate
- The rate at which the market capitalizes property income into value.
- Valuation Multiple
- The price investors pay for a unit of REIT cash flow.
- DRIP
- A dividend reinvestment plan that buys more shares with distributions.
- Compounding
- Growth on reinvested distributions that earn their own returns.
- Income REIT
- A REIT emphasizing steady current yield over growth.
- Growth REIT
- A REIT reinvesting for appreciation over current income.
- Interest-Rate Sensitivity
- REITs' tendency to reprice as rates and cap rates change.
- Distribution
- A payment a REIT makes to shareholders from its income.
Sources & References
- U.S. Securities and Exchange Commission. Investor.gov — Real Estate Investment Trusts (REITs)
- Nareit. What's a REIT (Real Estate Investment Trust)?
- Cornell Legal Information Institute. 26 U.S. Code § 856 — Definition of real estate investment trust
- FINRA. Real Estate Investments
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
