A diversified and conservatively leveraged portfolio of REIT Preferred Stocks (REIT Prefs) may yield 8-10% returns with lower volatility and significantly more security than a portfolio of REIT common shares. In comparison to the over $1 trillion market for REIT common stocks, the less than $30 billion market for fixed-rate and fixed-to-floating (non-convertible) REIT Preferences is a niche market that is particularly well suited to family offices, wealth managers, and high net worth individuals seeking solid current income and capital preservation.
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Reference:
https://innovativeincomeinvestor.com/preferred-stock-of-reits/