Private REITs vs. Public REITs: Yield and Liquidity Breakdown

 

English Alt Text: A four-panel comic titled “Private REITs vs. Public REITs: Yield and Liquidity Breakdown.” Panel 1 shows two investors comparing options, one says, “I want higher yield,” and the other says, “I need daily liquidity.” Panel 2 shows a chart comparing private REITs with 6–10% yield and public REITs with 3–5% yield. Panel 3 features icons of a locked vault labeled “Private” and an open stock ticker labeled “Public.” Panel 4 shows both investors smiling, with a caption: “Choose what fits your risk and income needs!”

Private REITs vs. Public REITs: Yield and Liquidity Breakdown

Real Estate Investment Trusts (REITs) offer a tax-efficient way to invest in real estate without the hassles of property management.

But not all REITs are created equal—especially when it comes to yield, access, and liquidity.

This guide compares private and public REITs side by side so you can decide which structure is best aligned with your financial goals.

📌 Table of Contents

What Is a REIT?

A Real Estate Investment Trust (REIT) is a company that owns or finances income-producing real estate. REITs are required to distribute at least 90% of taxable income to shareholders as dividends.

There are two broad categories:

✔️ Public REITs: traded on stock exchanges like the NYSE or NASDAQ

✔️ Private REITs: offered through brokers or platforms, not publicly listed

Private REITs: High Yield, Low Liquidity

✔️ Higher dividend yields (6%–10%) due to reduced reporting and marketing costs

✔️ Less volatile since they’re not subject to daily market swings

✘ Limited redemption options—often 1–2 years lock-up or longer

✘ Higher minimum investments ($25,000+)

✘ May lack transparency in pricing and governance

Public REITs: Liquid and Accessible

✔️ Traded on exchanges—buy/sell instantly like stocks

✔️ Lower entry point (under $100)

✔️ Regulated by the SEC with required disclosures

✘ Sensitive to market volatility and interest rate changes

✘ Dividend yields usually range between 3%–5%

Yield vs. Liquidity Breakdown

Feature Private REIT Public REIT
Dividend Yield 6–10% 3–5%
Liquidity Low (1–5 years lockup) High (daily trading)
Transparency Limited disclosures SEC filings required
Accessibility High-net-worth investors Open to general public

Who Should Choose What?

✔️ Choose Private REITs if: you seek high passive income, accept illiquidity, and meet investor qualifications

✔️ Choose Public REITs if: you want flexibility, market-based pricing, and SEC oversight

Many investors use both to diversify real estate exposure and balance risk and yield.

🔗 Explore Real Estate Investment Options

— Shield REIT gains with tax-free wrappers.

— Shift volatile assets into stable real estate returns.

— Reallocate capital gains into yield-based funds.

— Blend REIT cash flows with premium finance strategies.

— Use charitable trusts to defer REIT capital gains.



Keywords: private REIT vs public REIT, real estate investment, REIT yield comparison, liquidity in REITs, tax-efficient real estate income