Washington Real Estate Investment TrustInvesting in real estate has been an emerging trend in the world today. But before discussing on investing in real estate we must have a clear idea of what real estate investment really stands for. A Real Estate Investment is a designation given to companies that invest in real estate and automatically there is a reduction in the corporation income tax. In order for a company to become a real estate investment trust it has to necessarily announce a distribution of 90% of its profits amongst its shareholders on a yearly basis. These trusts dealing in real investment are structured on similar lines as mutual funds. Just as mutual funds provide for investment in stocks, real estate investment trusts allow for investments in real estate. It takes all kinds of real estate investment trusts to make this sector flourish and there are different kinds of these ranging from office real estate investment trusts to health care real estate investment trusts. With respect to real estate investment trust, the Washington Real Estate Investment Trust (abbreviated as WRE investment trust, or WREIT, or simply WRIT) is one of the most famous trusts in the world and greatly has improved the standards of real estate in Washington. It was founded in 1960 and its main objective is to acquire real estate, manage them, and deal in them in markets that are most profitable. The trust also serves to protect the company's assets by ensuring that they do not contain a single property type such as office buildings, shopping plazas or even apartments. To achieve the above mentioned aim the trust owns properties in four different categories. The trust's portfolio consists of various properties like retail centers, industrial properties, multifamily properties and office properties and all of these are situated in the areas stretching from Philadelphia in the north to Richmond and Virginia to the south. According to the most recent estimate the Washington real estate investment trust's diversified portfolio included 82 properties. There are various reasons why the Washington REIT is considered as a great option by many real estate investors. The P/E ratio of the trust is higher than most other players in the market and this is basically because of the high earnings of the trust from all its government tenants. Even more attractive is the fact that the dividend yield in case of the Washington real estate investment trust is higher, that is, while the industry average is around 4.26% the trust records a yield of 5.10%. The primary reason that makes the real estate investment trusts in Washington a stable investment vehicle is that it is self- managed, self- administered and does not allow any tenant hold even five percent of its overall revenue. In the recent years this trust has also been investing in a lot of medical real estate, suggesting the beginning of a better trend since such real estate has lower volatility rates. Before every acquisition the trust does a thorough inspection of the properties in question and in the process reduces the risks involved. The Washington REIT still has scope for further growth because federal spending in the region has increased and economic growth has gained more stability for its services. The biggest merit of the trust is that it believes in improving its capital assets by reducing operating costs and increasing revenues and even acquires these objectives, thus making the scene of real estate in Washington even better than it already is. So, if you need to buy real estate in Washington, it is important and profitable for you to know about the real estate investment trusts operating there. And that applies universally - whether it is Washington or Tampa that you are interested in. |