The Untold Truth About Mortgage REIT Investments

Seeking Alpha | Jul 13, 2019 at 2:00 PM
  • Publicly traded REITs have historically generated higher returns with lesser risk than most stocks, while providing valuable diversification benefits.
  • Exceptions exist, but more often than not, externally managed REITs suffer from greater conflicts of interest, have higher G&A cost, and shareholder returns have been significantly lower over time.
  • This one difference in management structure is an important reason why Mortgage REITs underperform Equity REITs in the long run.