REITs for Retirement

Brittney Barrett |

retirementREITs or Real Estate Investment trusts are considered, in certain markets, an excellent option for retirement. Some analysts believe now is one such market, with roughly 75 percent of writing on retirement mentioning REITs.  While REITs are a historically bumpy asset class, their potential to earn huge returns continue to attract investors in the market for income. With the options of government or high rate corporate bonds fewer and far between REITs are increasingly attractive to retirees.

Chimera Investment (CIM) -CIM is still trading low but it seems to be on a path to bigger things. Trading in the low range, the company has beat earnings estimated 7 of the 11 recent quarters at pays out close to $30 a share for dividend payments. Investing in US government and private residential mortgage back securities representing interests in obligations “backed by pools of mortgage loans” as one writer on seeking Alpha puts it.

Annaly Capital Management (NLY)- This REIT is best known for its strong quarterly dividend over the last decade. Most recently, it’s well beneath Chimera at $0.57, but the company is anticipated to experience a major gain in revenue. Additionally, the company has a very low risk profile as a result of the securities it is chiefly involved in, among the top reasons people consider it appealing for retirement.

Both Annaly and Chimera are mortgage backed but there's also the option of other REITs focusing on a range of real estate. Among these companies is Simon Property Group (SPG) , the owner of shopping malls and other commercial properties and there's also Equity Residential (EQR) which specializes in apartments and multifamily homes. This particular area may do well in the coming years as more and more Americans rent instead of buying homes.

There’s also the possibility of investing in non-traded REITs in order to create the ideal yield. This type of REIT has been gathering more attention. Given that they do not trade on any stock exchange, they vacillate less than traditional REITs reliant on the performance of the markets. These NTRs distribute seven or eight percent income on average. Beyond the income, some investors aree attracted to them for their exposure to a variety of items in the U.S. real estate sector, which remains at a low and many believe will soon bottom and become to recover. Furthermore, the option of further appreciation as a result of rising rents over the years serves as a sort of safety net for many investors looking for income

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
ORC Orchid Island Capital Inc. 10.60 -0.33 -3.02 2,726,489 Trade
SPG Simon Property Group Inc. 165.26 -2.61 -1.55 1,838,254 Trade
EQR Equity Residential of Beneficial Interest 64.58 0.05 0.08 1,920,344 Trade
CIM Chimera Investment Corporation 20.36 -0.34 -1.64 2,211,315 Trade
NLY Annaly Capital Management Inc 11.81 -0.18 -1.50 13,210,441 Trade


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