What is a REIT?
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate properties. REITs are designed to provide individual investors with access to a diverse portfolio of properties, including office buildings, apartments, shopping centers, hotels, and more. REITs typically generate revenue through rental income and, in some cases, property sales. Investors in REITs can earn a share of the income produced by the underlying properties, often in the form of dividends.
Are there any special legal requirements?
REITs are subject to specific legal requirements in order to maintain their tax-advantaged status and operate as investment vehicles. Some of these requirements include:
Structure: REITs must be structured as corporations, trusts, or associations and must be managed by a board of directors.
Asset ownership: REITs must own a large and diversified portfolio of real estate assets, and the majority of the company’s income must come from real estate-related sources such as rental income and property sales.
Distribution of income: REITs must distribute at least 90% of their taxable income to shareholders in the form of dividends.
Shareholder ownership: At least 75% of a REIT’s shares must be owned by individuals or entities that are not affiliated with the REIT.
Capitalization: REITs must have a large and widely dispersed shareholder base, with no single shareholder owning more than 50% of the outstanding shares.
These are just a few of the legal requirements that REITs must comply with in order to maintain their status as investment vehicles. It’s important for investors to carefully research the specific legal requirements of a REIT before making an investment decision.
Are there any REITS based in Arizona?
There are several Real Estate Investment Trusts (REITs) that have operations and properties in Arizona. Some of the largest REITs with a presence in Arizona include:
Simon Property Group: This is one of the largest shopping mall REITs in the world, with several properties located in Arizona, including Arizona Mills in Tempe and SanTan Village in Gilbert.
Public Storage: This self-storage REIT has several locations in Arizona, including facilities in Phoenix, Scottsdale, and Tempe.
American Tower Corporation: This communications infrastructure REIT has a significant presence in Arizona, with several communication tower and rooftop sites located throughout the state.
The top ten Real Estate Investment Trusts (REITs) in the United States, based on market capitalization, are:
Simon Property Group
Prologis Inc.
Public Storage
Equity Residential
Welltower Inc.
American Tower Corporation
Ventas Inc.
Essex Property Trust Inc.
CBRE Group Inc.
Duke Realty Corporation
Top 10 (REIT) focused on the single-family homes
As of my knowledge cut-off in 2021, some of the top Real Estate Investment Trusts (REITs) focused on the single-family rental market in the United States include:
Invitation Homes
American Homes 4 Rent
Progress Residential
Starwood Waypoint Homes
Front Yard Residential
Colony Capital Inc.
Home Partners of America
Altisource Residential
Silver Bay Realty Trust Corp.
FirstKey Homes
Please note that the real estate market and the ranking of REITs can change rapidly, and this list may not reflect the current state of the market.
What about Progress Residential?
Progress Residential is a Real Estate Investment Trust (REIT) focused on the single-family rental market in the United States. The company was founded in 2012 and is headquartered in Scottsdale, Arizona. Progress Residential acquires, develops, and manages single-family rental homes in various markets across the country, providing homes for rent to families and individuals. The company’s portfolio consists of thousands of single-family homes, and it operates a proprietary technology platform to manage its properties and provide services to its tenants. Progress Residential is one of the largest single-family rental companies in the United States, and it aims to provide affordable, high-quality rental housing to its tenants.
The founders of Progress Residential
Progress Residential was founded in 2012 by Donald Mullen Jr. and Joe Notter. Both Mr. Mullen and Mr. Notter have extensive experience in the real estate and financial industries, and they saw an opportunity to create a leading single-family rental company in the United States. Under their leadership, Progress Residential has grown to become one of the largest single-family rental companies in the country, with a portfolio of thousands of rental homes in various markets across the United States.
Who are the customers?
Progress Residential targets families and individuals who are looking for high-quality, affordable rental homes. The company’s portfolio consists of single-family homes in various markets across the United States, and it aims to provide its tenants with a comfortable and convenient living experience. Progress Residential offers a range of homes in different sizes, styles, and locations, making it easier for tenants to find the right home to suit their needs.
The company operates a proprietary technology platform that allows tenants to easily apply for a rental home, pay rent, and request maintenance services online. It also provides 24/7 customer support to its tenants, making it easier for them to resolve any issues or concerns that may arise.
In summary, Progress Residential’s target customer is anyone looking for a high-quality, affordable rental home that is managed and maintained by a professional team.