Stock Option Advisory

Bearish Trading & REITs

In a previous article, “Bears are After the Homebuilders“, we analyzed the real estate market and in particular the homebuilders. In this article, we will analyze REITs (Real Estate Investment Trusts). A REIT is a company that owns and operates real estate properties generating income. For a company to be considered a REIT by the IRS, it must distribute a minimum of 90% of its taxable income to its shareholders via dividends.