There are two types of public REITs: those that trade on a national securities exchange, such as the NYSE or NSDAQ (“Listed REITs”) and those that do not (“Non-Listed REITs). Listed and Non-Listed public REITs are subject to the same Internal Revenue Service qualification rules and are both registered with the Securities and Exchange Commission (“SEC”).
Listed and Non-Listed public REITs are both required to make regular SEC disclosures including quarterly (10-Q) and annual (10-K) reports, all of which are publicly available through the SEC’s EDGAR database. These government required, independently audited, GAAP compliant financial disclosure provide investors significant transparency into each public REITs operation and performance.
Listed REITs offer investors readily available liquidity, but the value of the stock is subject to the daily market forces and fluctuations. Listed REIT investors typically seek capital appreciation based on increases in the REITs stock price.
Non-Listed REITs have no public trading market for their stock. Typically, Non-Listed REITs are structured as a “finite life investment” meaning at the end of a given time-frame the REIT will either list on an exchange or liquidate its assets. Non-Listed REIT investors typically seek long-term, reliable income from distributions on their investment. Some Non-Listed REITs do offer redemption programs to provide investors liquidity options.