Real Estate
The World’s Largest Real Estate Investment Trusts (REITs)
The World’s Largest Real Estate Investment Trusts (REITs)
Real estate is widely regarded as an attractive asset class for investors.
This is because it offers several benefits like diversification (due to less correlation with stocks), monthly income, and protection from inflation. The latter is known as “inflation hedging”, and stems from real estate’s tendency to appreciate during periods of rising prices.
Affordability, of course, is a major barrier to investing in most real estate. Property markets around the world have reached bubble territory, making it incredibly difficult for people to get their foot in the door.
Thankfully, there are easier ways of gaining exposure. One of these is purchasing shares in a real estate investment trust (REIT), a type of company that owns and operates income-producing real estate, and is most often publicly-traded.
What Qualifies as REIT?
To qualify as a REIT in the U.S., a company must meet several criteria:
- Invest at least 75% of assets in real estate, cash , or U.S. Treasuries
- Derive at least 75% of gross income from rents, interest on mortgages, or real estate sales
- Pay at least 90% of taxable income in the form of shareholder dividends
- Be a taxable corporation
- Be managed by a board of directors or trustees
- Have at least 100 shareholders after one year of operations
- Have no more than half its shares held by five or fewer people
Investing in a REIT is similar to purchasing shares of any other publicly-traded company. There are also exchange-traded funds (ETFs) and mutual funds which may hold a basket of REITs. Lastly, note that some REITs are private, meaning they aren’t traded on stock exchanges.
The Top 10 by Market Cap
Here are the world’s 10 largest publicly-traded REITs, as of March 25, 2022.
REIT | Market Cap | Dividend Yield | Property Type |
---|---|---|---|
Prologis (NYSE: PLD) | $116.4B | 2.03% | Industrial |
American Tower (NYSE: AMT) | $109.8B | 2.38% | Communications |
Crown Castle (NYSE: CCI | $76.8B | 3.35% | Communications |
Public Storage (NYSE: PSA) | $65.9B | 2.14% | Self-storage |
Equinix (NYSE: EQIX) | $64.4B | 1.74% | Data centers |
Simon Property Group (NYSE: SPG) | $48.9B | 5.07% | Malls |
Welltower (NYSE: WELL) | $43.0B | 2.58% | Healthcare |
Digital Realty (NYSE: DLR) | $40.1B | 3.55% | Data centers |
Realty Income (NYSE: O) | $40.1B | 4.44% | Commercial |
AvalonBay Communities (NYSE: AVB) | $34.6B | 2.62% | Residential |
As shown above, REITs focus on different sectors of the market. Understanding their differences is an important step to consider before making an investment.
For example, Prologis manages the world’s largest portfolio of logistics real estate. This includes warehouses, distribution centers, and other supply chain facilities around the globe. It’s reasonable to assume that this REIT would benefit from further growth in ecommerce—more on this near the end.
Realty Income, on the other hand, owns a portfolio of over 11,100 commercial real estate properties in the U.S. and Europe. It rents these properties out to major brands like Walgreens and 7-Eleven, which together account for 8.1% of the REIT’s annual income.
More Than Just Buildings
Cell towers and data centers may not seem like “real estate”, but they are both critical pieces of modern infrastructure that take up land.
REITs that focus on these sectors include American Tower and Crown Castle, which own wireless communications assets in the U.S. and abroad. They are likely to benefit from the increased adoption of 5G networks and the Internet of Things (IoT).
On the other hand, Equinix and Digital Realty are focused on data centers, a fast growing industry that is benefitting from digitalization. Both of these REITs work with major tech firms such as Amazon and Google.
Trends to Watch
The demand for real estate can be heavily influenced by overarching trends found around the world. One of these is population growth and urbanization, which has drastically pushed up the cost of housing in many cities around the world.
There’s also the rising prevalence of ecommerce, which has triggered a boom in demand for warehouse space. This is best captured by Amazon’s massive growth during the COVID-19 pandemic, during which the company doubled the number of its warehouse facilities.
Globally, ecommerce accounts for just 19.6% of total retail sales. Should that figure continue to rise, industrial real estate prices could be in store for robust, long-term growth.
Real Estate
Modular Housing vs. Traditional Housing: How Do They Compare?
Modular housing can be completed 40% faster and costs 10-25% less than traditional construction methods. Is the future of housing modular?


Modular Housing vs. Traditional Housing: How Do They Compare?
The U.S. needs new houses. Lots of them.
With housing prices nearing six times annual incomes, increasing supply is a must if there is any hope of bringing down house prices, and modular housing could be the solution.
This visualization is the third and final piece of the Reimagining Home Series from our sponsor Boxabl, where we compare the benefits of modular housing against traditional construction methods. Let’s start with the basics.
What Is Modular Housing?
Modular homes are built offsite, in standardized sections, usually in a factory setting. They are then transported to the building site and assembled on a waiting foundation. Once complete, modular homes look just like any other house.
Modular housing is not the same as manufactured homes, which are also sometimes called mobile homes. Like modular housing, manufactured homes are built offsite in a factory, but the key difference is that they can be moved after being assembled. Modular homes aren’t meant to be moved again after final assembly.
6 Ways Modular Homes Differ to Traditional Homes
The following benefits are based on information from the Modular Home Building Association, as well as a paper given at the 2020 Creative Construction e-Conference by members of the Department of Civil Engineering at the University of Texas at Arlington.
1. Speed of Construction
Because of the piecemeal nature of modular construction, many building activities can be done simultaneously, greatly reducing the overall time of completion. At the same time, because construction happens indoors, weather delays aren’t an issue. Overall, a modular housing project can be completed in 40% less time than using traditional building construction methods.
2. Cost Effectiveness
Standardization of design, less transportation of materials onsite, and the reduced impact of weather are some of the reasons that modular housing can be much cheaper than traditional building methods. According to the authors of the paper, there was a 10-25% decrease in construction costs for modular housing, again, compared to traditional methods.
3. Customizable
A common misconception is that modular housing isn’t customizable. While many manufacturers will often begin with a starter floor plan, they may also offer various customization options throughout the home.
4. Safety Record
Construction is a dangerous way to make a living. In 2021, construction and extraction workers held the number two spot for fatal occupational injuries in the U.S., with 951 work fatalities.
When you drill down into that number, construction tradespeople are in the majority, by far, with 726 that year alone.Description | Fatalities |
---|---|
Transportation and material moving occupations | 1,523 |
Construction and extraction occupations | 951 |
Installation, maintenance, and repair occupations | 475 |
Building and grounds cleaning and maintenance occupations | 356 |
Management occupations | 323 |
Protective service occupations | 302 |
Production occupations | 242 |
Farming, fishing, and forestry occupations | 218 |
Sales and related occupations | 200 |
Food preparation and serving related occupations | 101 |
Office and administrative support occupations | 91 |
Unknown occupation | 71 |
Personal care and service occupations | 64 |
Healthcare practitioners and technical occupations | 57 |
Arts, design, entertainment, sports, and media occupations | 45 |
Community and social services occupations | 40 |
Healthcare support occupations | 32 |
Architecture and engineering occupations | 29 |
Business and financial operations occupations | 27 |
Educational instruction and library occupations | 16 |
Legal occupations | 11 |
Life, physical, and social science occupations | 10 |
Computer and mathematical occupations | 6 |
Military occupations | 0 |
Total | 5,190 |
Because modular construction happens in a controlled, factory environment, the number of accidents decreases by 80% compared to traditional building methods.
5. Environmental Impact
Anyone who has walked past a residential build site can testify to the amount of waste produced during construction. Modular construction is more efficient and therefore produces less waste. And because onsite construction is limited to assembly, there is less dust and noise. Carbon emissions are also 38% lower.
6. Built to Last
Modular housing is as good, if not better constructed, than many traditionally-built houses. The factory environment allows for superior quality control, and homes built this way use 15-20% more wood per square foot, which makes them stronger. Moreover, in a study commissioned by the Federal Emergency Management Agency after 1992’s Hurricane Andrew found that modular housing “performed much better than conventional residential framing.”
A Market On The Rise
Not only is modular housing cheaper and greener than traditional construction methods, it is also a market on the rise.
According to a recent report, the global modular construction market is expected to reach $54 billion by 2027, with a CAGR of 2.9% between 2021 to 2027.
Thinking Outside of the Box on Housing
Modular housing could be a solution to the housing affordability crisis not only in the U.S., but around the world. And with the global city population expected to hit 68% by 2050, it’s time to think outside the box on housing.
Boxabl uses advanced, mass production techniques to build and ship homes that significantly lower the cost of home ownership for everyone.
This is the final piece in the Reimagining Home Series from our sponsor, Boxabl. Be sure to read parts one and two on urbanization and affordable housing.

Learn more about how Boxabl is helping tackle the housing affordability crisis.

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