- Irvine US-CA
Steadfast REIT Investments, LLC, is part of a vertically integrated group of companies that has undertaken numerous real estate developments spanning the United States. Steadfast REIT, as a real estate investment trust (REIT), meets federal requirements that a majority of its assets are invested in real estate and that 90 percent of its annual taxable income is distributed among shareholders. There are many types of real estate investment trusts, including equity, mortgage, and hybrid REITs. The equity trusts are the most prevalent, and the companies directly manage and own real properties. In addition to generating ongoing income through dividends, these entities also provide shareholders with long-term income through capital gains when properties are sold. Rather than investing directly in real estate, mortgage REITs lend money to property owners and managers or they invest in mortgage-backed securities. The revenue these vehicles generate is tied to interest received on mortgage loans. In addition to classification by type of investment, REITs are categorized by how they are held; that is, as private, publicly traded, or public non-traded entities. This in turn affects their reporting requirements with the U.S. Securities and Exchange Commission and their investment fundraising strategies.
Steadfast REIT Investments, LLC, is a well-established real estate investment trust (REIT) that exists as part of a larger group of development-focused companies. Steadfast REIT concentrates on targeted investments in stable apartment communities that enjoy robust occupancy rates, regardless of market cycles. As real property-based asset vehicles, REITs benefit from a number of pieces of federal legislation, including the Real Estate Investment Trust Act of 1960. This landmark law enabled small investors to invest in common properties, thus mitigating risk while accessing similar structures as those enjoyed by direct owners. The Tax Reform Act of 1986 further expanded REITs’ capacities by giving them permission to manage and operate (as well as own) commercial properties that generate income. The 1986 act was also instrumental in ending the practice of loss-generating real estate “tax shelters.” A final law affecting real estate investment trusts as they exist today was the REIT Modernization Act of 1999. According to this law, the trust can own as much as 100 percent of subsidiary operations that provide REIT tenants with services. In addition, taxable income requirements were changed to be consistent with how they were in the 1960s and 1970s.
An extension of Steadfast Capital Markets Group, Steadfast REITs specializes in real estate investment and property management. Led by Rod Emery, the Steadfast REIT division follows a 132-point checklist to manage its property portfolio, which consists of industrial space and apartment facilities. There are three types of REITs: equity, mortgage, and hybrid. Equity REITs invest in properties that generate revenue from rent. This kind of REIT purchases and operates a property on an ongoing basis, ensuring it maintains standards that will increase its income-earning potential. Equity REITs typically seek out apartments, office buildings, and shopping centers. Mortgage REITs earn revenue through the purchase of existing mortgages and mortgage-backed securities. Mortgage REITs also loan funds to real estate owners and the operators of income-earning properties and manage interest rate and credit risk by leveraging derivatives and hedging strategies. A mortgage REIT earns most of its revenue through the interest that accrues on mortgage loans. A hybrid REIT employs a combination of equity and mortgage REIT strategies. The hybrid model invests in both mortgages and commercial and residential properties. REITs in this category generate revenue through rent, capital gains, and interest.