REAL ESTATE INCOME & GROWTH STRATEGY
​REAL ESTATE INCOME & GROWTH STRATEGY
A Real Estate Income and Growth Strategy is an investment approach focused on income generation and capital appreciation by investing in Real Estate Investment Trusts (REITs) and other real estate-related securities. REITs own, operate, or finance income-producing real estate, offering investors a way to access real estate markets without buying properties directly. This strategy is suited for investors looking for portfolio diversification, regular income, and potential for long-term capital growth.
Key Elements of the Strategy:
​
-
Diversification with REITs: REITs offer an effective way to diversify an investment portfolio beyond traditional asset classes. They invest in a wide range of real estate assets, including residential, commercial, industrial, healthcare facilities, and more. This diversification can provide a hedge against volatility in other markets.
-
Income Generation: REITs are required to distribute at least 90% of their taxable income to shareholders annually, usually in the form of dividends, making them a compelling choice for income-seeking investors.
-
Growth Potential: In addition to generating regular income, REITs offer potential capital appreciation over the long term as property values and rents increase. They also can reinvest a portion of their profits into developing or improving properties, which can contribute to growth.
-
Accessibility and Liquidity: Investing in REITs provides exposure to the real estate market with the added benefit of liquidity, as REIT shares are traded on major exchanges like individual stocks. This is advantageous compared to direct real estate investments, which can be illiquid and require substantial capital.
-
Active Management: Successful implementation of this strategy involves active management and thorough analysis of REITs and real estate securities. Factors to consider include property location, quality of assets, occupancy rates, the strength of lease agreements, the experience of management, and the overall health of the real estate market.
-
Risk Management: While REITs can provide diversification benefits, they also come with specific risks, including interest rate sensitivity, market risk, and property-specific issues. A well-diversified portfolio across different REIT types, such as commercial, industrial, and residential real estate sectors, can help manage these risks.
-
Economic and Market Research: Understanding the broader economic and real estate market conditions is crucial as factors like interest rates, employment rates, and consumer spending can significantly impact the real estate market and, subsequently, REIT performance.
Summary: The Real Estate Income and Growth Strategy provides a balanced approach for investors seeking income generation, potential capital appreciation, and portfolio diversification.
Strategies Overview
At Infinitus Wealth Management, we deliver personalized wealth management strategies that align with your specific financial objectives and individual risk tolerance. Our approach is grounded in a thorough understanding of global financial markets and consistent research, allowing us to construct diverse, resilient, and custom portfolios intended to withstand market volatility while pursuing attractive returns.
We build custom portfolios and offer multiple investment strategies to meet our clients' unique investment goals. We actively manage several US equity, international equity, fixed income, tax-exempt fixed income, and blended strategies ranging from large-cap to small-cap equity and income-generating strategies.
​
Asset Allocation: Our investment strategy starts with asset allocation, which we consider the most vital determinant of portfolio returns and risk management. We create a balanced mix of various asset classes, such as equities, fixed income, cash, real estate, and alternatives. The blend is customized to your risk appetite, financial objectives, and investment time horizon.
Diversification: We adhere to the principle of diversification among asset classes and within each asset class. By spreading investments across various sectors, geographic locations, and market capitalizations, we aim to mitigate risk potential.
Risk Management: Risk assessment forms a crucial part of our investment strategy. We continuously monitor and adjust portfolios to manage exposure to market risks. By utilizing advanced risk management techniques and tools, we ensure your portfolio aligns with your personal risk tolerance and long-term objectives.
Tactical Asset Allocation: We go beyond a static allocation approach by employing tactical asset allocation strategies. Our investment team actively adjusts the asset mix in response to short-term market predictions to exploit market inefficiencies or seize new opportunities while maintaining a balance with the strategic asset allocation targets.
Tax-Efficient Investing: Our strategies consider the impact of taxes on your investment returns. We aim to maximize after-tax returns through strategies like tax-loss harvesting, holding investments longer for favorable long-term capital gain rates, and strategically placing investments in tax-advantaged accounts.
Regular Portfolio Review and Rebalancing: Investment is not a one-time action but a dynamic process that requires ongoing oversight. We conduct regular reviews of your portfolio to ensure it remains in line with your goals and risk tolerance. Rebalancing, when necessary, helps maintain the desired level of risk and return.
At Infinitus Wealth Management, we understand that every client's investment journey is unique. As such, we don't offer a one-size-fits-all strategy but instead customize each portfolio to suit your individual needs and preferences. Our team is committed to working closely with you, providing the guidance and resources necessary to navigate the complex world of investing and to help your wealth grow and persevere over time.