Maria Stamolis is an accomplished investment executive with three decades of experience spanning real estate finance, operations, and development. As Chief Investment Officer at Lincoln Property Company, she directs national investment strategy, structuring equity and debt across a diversified portfolio while leveraging institutional partnerships. Her leadership includes co‑directing multibillion‑dollar real estate funds at Canyon Partners, managing complex projects at Karney Management Company and R&B Realty Group, and advising federal HUD‑backed developments. An adjunct faculty member at Southern Methodist University and a committed supporter of the Boys and Girls Club of Santa Monica, Ms. Stamolis pairs deep market insight with a passion for education and philanthropy—expertise that informs her guidance on real estate investment vehicles like REITs.
Real Estate Investment Trusts, or REITs, offer individuals the opportunity to invest in real estate without directly purchasing properties. These firms pool money from investors to purchase and manage properties such as malls, offices, or apartment buildings that generate steady rental income. Since REIT shares trade on stock exchanges they’re easy to buy or sell, unlike actual buildings. This enables everyday investors to participate in major real estate projects without requiring substantial capital.
REITs must adhere to strict rules to maintain their special status. REITs are required to invest at least three-quarters of their funds in real estate, and earn most of their income from rent or loan interest. They also send 90 percent of their taxable profits to shareholders as dividends, creating a reliable income flow. People are looking for steady payouts like this, but it means REITs have less cash to reinvest than other companies or funds.
REITs come in different types to suit various preferences. Some focus on owning properties and collecting rent, while others lend money and earn interest from mortgages. Some hybrids perform both functions. Investors choose REITs in sectors like retail, healthcare, or warehouses based on their risk tolerance and market expectations.
Unlike owning a building, REITs enable investors to cash out quickly. Shares trade on public markets, so selling doesn’t take months like a property might. This is particularly important when markets weaken or cash is needed, although share prices can fluctuate like stocks. Investors accept this for the ease of avoiding the time and effort required by active property management.
REITs also offer tax benefits that attract savvy investors. They avoid corporate taxes if they meet specific criteria, and shareholders only pay taxes on dividends at their tax rates. Some dividends qualify for lower tax rates, while others are considered ordinary income. This means that with careful planning an investor may be able to boost returns.
With REITs, investors gain access to professional management teams that handle buying, leasing, and property maintenance. This circumvents dealing with tenants or repairs yourself, as you would with direct real estate purchases. The trade-off is management fees, which cut into profits, so checking those costs is a must.
How REITs perform is often tied to the overall economy. When interest rates rise, borrowing becomes more expensive, squeezing profits. Lower rates make it easier and less expensive to buy properties. Booming economies drive up demand for rentals, while slowdowns can leave spaces empty. Investors closely monitor these trends to assess the potential of REITs.
Over the years, REITs have shown staying power. Since the 1960s they’ve often matched or beaten stock market returns, averaging yearly gains of 9-12 percent from dividend income and price appreciation. This makes them appealing to individuals seeking both income and growth, although past success doesn’t guarantee future performance.
REITs help spread risk in an investment portfolio. Real estate doesn’t always move in sync with stocks or bonds, so it can steady the ship when markets dip. By holding REITs investors also diversify their investments across different property types and regions, which helps mitigate the impact of economic fluctuations.
Anyone can invest in REITs without needing a large amount of money. Unlike buying a building, which requires a significant amount of cash, you can acquire a single REIT share at a relatively low cost. This opens the door for anyone to build diverse real estate holdings without needing to be experts in the field.
Looking ahead, REITs are poised to evolve with the times. The growing demand for assets such as data centers and eco-friendly buildings drives REITs into new areas. As cities evolve and remote work reshapes office needs, REITs are increasingly investing in hot spots such as warehouses and rentals. This adaptability enables investors to ride trends such as sustainability or tech growth, staying ahead in a shifting market.
