Private REITs
A private REIT is not registered with the SEC. The shares are not listed on a public exchange such as the New York Stock Exchange (“NYSE”) and are not directly affected by stock market volatility. Only accredited investors can purchase a private REIT. These products are illiquid and frequently have limited redemption windows that vary by company.
Publicly traded REITs
Publicly traded REITs are listed on a stock exchange and, as such, these exchange-traded funds (ETFs) are subject to the volatility of the stock market. Because these REITs are registered with the SEC and publicly traded, there is significant public information available. There are no restrictions as to who can invest in publicly-traded REITs. Publicly traded REITs are liquid and may be traded daily, just like traditional stocks.
Public non-traded REITs
Public non-traded REITs must file with the SEC, which requires public reporting. Shares, however, are not traded on major stock exchanges. These shares are also illiquid and not directly subject to stock market volatility, but frequently have limited redemption periods. The performance of non-traded REITs can be influenced by factors such as interest rates, which may impact the returns. Non-traded REITs are available to all investors but are subject to certain investment limits and suitability requirements that vary by fund.