Infrastructure REITs

Infrastructure REITs operate and own real estate which pertains to infrastructure. Examples of infrastructure real estate include fiber cables, wireless infrastructure, telecommunications towers and energy pipelines.

Some infrastructure REITs strictly invest in domestic real estate assets, while others invest globally. U.S.-based assets are typically safer and easier to predict, but international investments can offer far more growth potential.

It is important for investors to know that the types of industries that lease properties from infrastructure REITs are highly regulated, and these regulations can work against REITs, or in favor of them. For example, some regulations may be very costly to implement, but other regulations may give REITs strong pricing power and tenant retention.

Wireless infrastructure in particular has fared well during the coronavirus pandemic, as the demand for mobile data is growing rapidly. Additionally, communications towers generate steady rental revenue with long-term leases, making them somewhat resistant to recessions.

Large infrastructure REITs include American Tower Corporation (NYSE: AMT), Crown Castle International Corp (NYSE: CCI) and SBA Communications Corp. (NASDAQ: SBAC).