Retail real estate investors face some real risks in a slow economy. A retail real estate trust manages shares in such properties as malls, shopping centers and outlet destinations, all of which depend on consumer confidence and spending to generate profits. A retail real estate investment company does best for its investors when it maintains a diverse portfolio, rather than specializing in high-end, luxury or niche venues. Good geographic distribution, with a mix of local, regional and so-called super-regional properties, is also something a retail real estate investor should seek out.

Participating in a retail REIT, as with any real estate investment trust, means you receive dividends on the profits made by the real estate investment companies, which receive tax benefits by operating as a trust. To make the most of retail real estate investment trusts, online sources recommend that you:

1. Invest conservatively with larger, more stable retail real estate investment companies, especially in times of low consumer confidence.

2. Seek out retail REIT opportunities that offer added value through sustainable development and cost-conscious management.

3. Keep up with the movement in volatile retail real estate investments.

Action Steps
The best contacts and resources to help you get it done

Stick with a proven retail real estate investment trust company

Research the REIT before you buy into the firm. If you want to be sure that you will receive regular dividends, look for a retail REIT that has been performing solidly for a long period of time. While there is never a guarantee when investing in stock, you have a better chance of remaining on top when you go with proven properties.

I recommend: Simon Property Group is the largest public real estate holdings company in the United States, with diversified investments across local, regional and international malls, shopping centers and outlet destinations. Glimcher Realty Trust is a recognized leader in the development of regional and super-regional mall properties.

Look for value-added retail real estate investment trust services

In a difficult economy, a retail REIT can provide added value for its investors by reducing energy overhead costs and increasing sustainable development.

I recommend: Developers Diversified Realty, a retail real estate investment trust with properties from coast to coast and in several overseas markets, has entered into a partnership with SunEdison to begin supplying solar energy to its malls in an effort to become more environmentally sustainable and profitable. Regency Centers, a Florida-based retail real estate investment trust company, works with NOAA weather data to coordinate sustainable irrigation of its shopping centers.

Watch the news to identify REIT retail investing opportunities

When you are watching the market, add a view of the real estate investment trust movements to see if you could use a REIT to help diversity your portfolio. After you begin adding REITS to your strategy, you will need a good source to keep up with your investments.

I recommend: Keep up with the industry by regularly reading REIT Media. Retail Traffic lets investors know about the latest trends that are affecting the investing industry.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Talk to your current financial advisor to find out which retail real estate investment trusts are performing well.