Real estate and REIT stocks
There are no public real estate portfolios on Arithmos yet. Describe one in a sentence and it will be the first.
Real estate portfolios and indexes
What counts as real estate and REIT stocks
Real estate stocks are companies that own, develop or manage property. Most are real estate investment trusts (REITs), which own buildings from warehouses and data centers to apartments and shopping centers, and must pay out most of their income as dividends.
Because they borrow to buy property and pay high dividends, REITs are sensitive to interest rates: their shares often fall when rates rise.
- Industrial and logistics
- Warehouses and distribution centers.
- For example: Prologis, Rexford
- Data centers and towers
- Digital infrastructure owned as property.
- For example: Equinix, Digital Realty, American Tower
- Homes and apartments
- Residential landlords and homebuilders.
- For example: AvalonBay, Invitation Homes, D.R. Horton, Lennar
- Retail and offices
- Shopping centers and office buildings.
- For example: Simon Property, Realty Income, Boston Properties
Risks to know
- Rising interest rates raise borrowing costs and lower property values.
- Offices and some shopping centers face falling demand.
- REIT dividends can be cut when rents fall.
Guides and articles
- GuideHow to invest in dividend stocksHow dividends work, what yield really tells you, and how to avoid the common traps when investing for income.
- GuideInvesting basics: shares, funds and portfolios explainedWhat a share, a fund, an index and a portfolio actually are, in plain English, and how they fit together.
Questions about REIT stocks
How do I invest in REIT stocks?
You can buy a fund that tracks REIT stocks, or choose the companies yourself. On Arithmos you describe the theme in a sentence and get a list of companies with a weight for each, the reason each was picked and a 10-year backtest. You then buy the shares at your own broker. Arithmos never holds your money or places trades.
What is a real estate index?
A real estate index is a list of real estate companies with a set weight for each, chosen and weighted by fixed rules. Unlike an ETF it is not a fund you buy as one share: you buy the companies yourself, so there is no yearly fund fee, and you can change the rules or the companies.
What is a REIT?
A real estate investment trust is a company that owns income-producing property and must pay out most of its taxable income as dividends. Buying REIT shares is a way to own property without buying buildings.
Make your own real estate portfolio
Describe the idea in a sentence. Arithmos picks the companies, explains each one and backtests the result against the S&P 500.
Portfolios are lists of shares built by Arithmos members and the Arithmos research team, not funds. Results before a portfolio’s creation date are simulated from real historical prices and don’t include fees, taxes or trading costs. How we calculate performance. Nothing here is investment advice.
