AAA claims that commercial property investment trusts are a great option for alternative investors.
Boston, MA, USA, August 4, 2012 -- Alternative Asset Analysis (AAA) claims that commercial property investment trusts are a great option for alternative investors.
The alternative investment advocacy group claims that recent results showing impressive returns from real estate investment trusts (REITs) demonstrate how alternatives are regularly outperforming more traditional asset classes, such as equities.
Recent statistics show that average annualized returns from REITs total 33 per cent over the past three years, illustrating the kinds of returns people can see if they invest in income-producing property at the right time. REITs offer extra benefits to investors as they are obliged to distribute 90 per cent of their taxable income to shareholder to avoid the kind of taxes that other corporate property owners pay.
Investors usually receive payouts each quarter, which they take as dividend or cash. The Standard & Poor’s 500 index average dividend yield is just 2.1 per cent, compared with an average yield of 3.2 per cent for REITs.
Investing in real estate is a popular option at the moment, with house prices in the US finally increasing once more. Many of those who took the risk and bought property when the prices were at rock bottom will already be reaping the returns. AAA's analysis partner Anthony Johnson said, "It's not surprising that investors are putting their cash into solid investments such as bricks and mortar, precious metals, commodities and timberland. Getting something in return for your cash rather than simply some shares, is increasingly attractive."
He added that REITS are attractive as low interest rates make it difficult to earn much interest without taking a risk on an asset class that can earn well each month. Like forestry investment through firms like Greenwood Management, REITs allow investors to receive income while holding onto an asset that will also produce healthy returns when it is sold off.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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