Pooled Funds
What are Pooled Funds? Pooled funds is a term used to collectively refer to a set of money from individual investors combined, i.e., “pooled” together for investment purposes. The funds are combined with the intention of benefiting from economies of scale through cost minimization. Some examples of pooled funds include, but are not limited to,...
Capital Preservation
What is Capital Preservation? Capital preservation is an investment strategy that promotes saving, i.e., preserving capital and avoiding loss of value. The strategy adopts a conservative approach towards investing specifically in “safe” short-term instruments such as savings accounts, FDIC-insured checking accounts, Treasury bills, and certificates of deposits (CDs). Key Factors in Capital Preservation 1. Levels...
Residential Properties REITs
What are Residential Properties REITs? Residential properties REITs are REITs that own and manage residential units for renting out to tenants. Residential REITs may be categorized into either single-family or multi-family structures that are available for occupation for non-business purposes. They may include condominiums, vacation homes, student housing, apartment buildings, etc. Residential real estate REITs...
Adjusted Funds From Operations (AFFO)
What are Adjusted Funds From Operations (AFFO)? Adjusted Funds From Operations (AFFO) is a measure of the financial performance of a REIT, and it is used as an alternative to Funds From Operations (FFO). AFFO is a superior measure compared to FFO because the former considers the maintenance costs of the real estate property over...
Private REITs vs Publicly Traded REITs
What are Private REITs vs Publicly Traded REITs? The article below covers private REITs vs publicly traded REITs. Real estate investment trusts (REITs) can be classified into either private or public, traded or non-traded. REITs specifically invest in the real estate sector, and they lease and collect rental income on the invested properties that is...
