Farmland REITs, or F-REITs, differ from traditional farmland investments in several ways, including:
Ownership
Farmland REITs own the land and lease it to farmers, while traditional farmland investments are typically the purchase of a complete property.
Access
Farmland REITs provide investors with access to smaller, more liquid allocations of agricultural real estate assets.
Trading
Farmland REITs are securities that trade like stocks on major exchanges, while traditional farmland investments are not.
Fees
Farmland REITs have lower transaction and administrative expenses than direct acquisitions.
Diversification
REIT returns often have little correlation with common equities, which can benefit portfolio diversification.
Due to the low transaction and administrative expenses compared to direct acquisitions, farmland REITs provide exposure to smaller and more liquid allocations of agricultural real estate assets.
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