Long-term investment in REITs leads to higher profits and shareholder returns.
Real estate investment trusts (REITs) benefit from holding properties for the long term. A study of U.S. REITs from 1995 to 2018 shows that REIT performance is better when properties are held longer. REITs that follow long-term investment strategies have higher profits and shareholder returns. This is because they are more efficient, have better cash flow, and put in more effort in managing properties.