4 Ways Better Operations Data is a Competitive Advantage for REITs

Managers take a different approach to operating Real Estate Investment Trusts (REITs) than they do to operating privately held commercial real estate companies. The very elements that make their existence possible ensures this to be the case.

REITs pay no corporate taxes and enjoy a stream of low-cost capital through the public markets. In return for these perks, REITs must pay out 90% of their taxable income in the form of dividends to their shareholders. Moreover, their income generation is limited largely to the cash flows extracted from their real estate holdings.

In order to be listed on major stock exchanges and access their tremendous pools of capital, REITs agree to the painful process of filing quarterly reports to the SEC (and their own board of directors).