DIH’s REIT Price Data.
Overview: DIH provides independent prices for private, public non-listed, and public REITs, Business Development Companies (BDCs), equity REITs, and other interval or closed-end funds.
We eliminate the need for you to do manual quote collection and data entry because our team does all of the time-consuming tracking, discovery, follow-up, and SEC-filing analysis for you.
All relevant source and methodology data used to price each security is available for inspection and auditing. Our data complies with and discloses the valuation methodologies per FINRA Rules 2231 and 2111.
Coverage: Via our network of hundreds of REIT issuers, we currently cover private, public non-listed, and public REITs, BDCs, equity REITs, and other interval or closed-end funds.
History: Our data includes historical based on your portfolio.
Updates: We update our REIT price data at the end of the day.
Delivery: You can receive our data in bulk files via download, S3 to S3, or on-demand via API.
Pricing: Several inputs go into the pricing for our data. For example, do want data for all available instruments, or a subset? How much history do you want? Do you want updates going forward? Contact us to learn more.
Why Firms Choose DIH’s Data.
There are several reasons market participants rely upon our REIT price data:
- Transparency – We make all of the source and methodology data used to create our independent prices available for inspection and auditing.
- Compliance – Our data complies with and discloses the valuation methodologies per FINRA Rules 2231 and 2111.
- Coverage – We provide price data for private, public non-listed, and public REITs, BDCs, equity REITs, and other interval or closed-end funds.
An Overview of REIT Price Data.
Before we get into the details of how our data is created, a quick review of swaptions may be helpful.
WHAT IS A REIT?
REIT stands for “Real Estate Investment Trust”. A REIT is organized as a partnership, corporation, trust, or association that owns, operates, or finances income-generating real estate. Similar to a mutual fund, a REIT pools the capital of numerous investors. So investors, from institutions to individuals, can earn a steady income via dividends from real estate investments without having to buy, manage, or finance any properties themselves.
Many REITs are publicly traded on major securities exchanges, and investors can buy and sell them like stocks throughout the trading session. Such REITs usually trade under substantial volume and are considered very liquid instruments (unlike the physical real estate assets underpinning them).
REITs invest in many types of commercial real estate, including apartment buildings, offices, shopping centers, hotels, hospitals, warehouses, cell towers, pipelines, etc. Many specialize in a specific real estate sector, but some hold different types of properties.
WHAT CONSTITUTES A REIT?
Most REITs lease space, collect rent on their properties, and then distribute that income as dividends to their shareholders. Other REITs, called “mortgage REITs”, don’t actually own real estate. Instead they finance real estate and earn income from the interest on their investments.
In the USA, the Internal Revenue Code (IRC) lays out the requirements with which a company must comply to qualify as a REIT. These requirements include:
- Invest at least 75% of total assets in real estate, cash, or US Treasuries
- Derive at least 75% of gross income from rents, interest on mortgages that finance real property, or real estate sales
- Pay a minimum of 90% of taxable income in the form of shareholder dividends each year
- Be an entity that’s taxable as a corporation
- Be managed by a board of directors or trustees
- Have at least 100 shareholders after its first year of existence
- Have no more than 50% of its shares held by five or fewer individuals
TYPES OF REITS.
There are three (3) types of REITs:
- Equity REIT – The most common type, equity REITs own and manage income-producing real estate. Revenues are generated primarily through rents (not by reselling properties).
- Mortgage REIT – A mortgage REIT lends money to real estate owners and operators either directly through mortgages and loans, or indirectly through the acquisition of mortgage-backed securities. Its earnings are generated primarily by the net interest margin — that is, the spread between the interest it earns on mortgage loans and the cost of funding these loans. Net interest margin puts a mortgage REIT at risk due to interest rate increases.
- Hybrid REIT – A hybrid REIT uses the investment strategies of both equity and mortgage REITs.
A REIT can be further categorized by how its shares are bought and held:
- Publicly Traded REIT – Shares are listed on an exchange where they are bought and sold by investors.
- Public Non-Traded REIT – Although registered with the national securities regulator (e.g. SEC), this type of REIT does NOT trade on an exchange and therefore is less liquid than publicly traded REITs. However, it does tend to be more stable and insulated from market fluctuations.
- Private REIT – This type of REIT is not registered with a regulator and does not trade on an exchange. Typically this type of REIT is only sold to institutional investors.
You can invest in shares of publicly traded REITs—as well as REIT mutual funds and REIT exchange-traded funds (ETFs)— through a broker. You can buy shares of a non-traded REIT through a broker or financial advisor who participates in the non-traded REIT’s offering. REITs are also included in a growing number of defined-benefit and defined-contribution investment plans.
Many investors are drawn to REITs because they can offer a strong, stable annual dividend and the potential for long-term capital appreciation. However, like all investments, REITs have their advantages and disadvantages:
ADVANTAGES – Most REITs trade on public exchanges, so they are easy to buy and sell, unlike physical real estate. They offer attractive risk-adjusted returns and stable cash flow. REITs can diversify a portfolio and provide dividend-based income.
DISADVANTAGES – Because they can only use 10% of taxable income to acquire new real estate holdings (90% must be paid back to investors as dividends), REITs don’t offer much in terms of capital appreciation. Also, their dividends are taxed as regular income. Finally, REITs can have high management and transaction fees.
Who Can Benefit from DIH’s REIT Price Data?
Our REIT price data is invaluable to anyone who has or wants exposure to the real estate market. We see a wide range of market participants using our data, including:
- Hedge Funds
- Asset Managers
- Investment Banks
- High Net Worth Individuals
How Firms Use Our REIT Price Data.
Market participants utilize our REIT price data in various ways, especially for:
- Risk Management
Flexible Updates & Data Delivery Methods.
Our REIT price data is available on an end-of-day basis.
You may customize our data to best suit your needs. For example, request data on all available instruments or provide a custom list.
We offer several ways to access our REIT price data:
Bulk File Download – For most of our clients, downloading our data in bulk files is most convenient. We deliver files in .CSV format via download or S3 to S3.
API – Some use cases are better suited for on-demand delivery of data via an API.