Real estate investment trusts (REITs) are companies that own and operate income-producing real estate. From office complexes to shopping centers, REITs invest in various commercial properties, giving them an opportunity to accumulate substantial wealth. In this article, we will explore the ten largest REITs in the world and delve into their market areas. We will rank these REITs based on their market capitalization, which represents the market value of their outstanding shares.
Digital Realty Trust
Digital Realty Trust specializes in carrier-neutral data centers and offers global peering and colocation services. As the data center market expands, the company expects continued growth in the coming years.
Did You Know? In 2015, Digital Realty Trust sold a Philadelphia building it had acquired for $59 million in 2005, fetching an impressive $161 million.
AvalonBay Communities
AvalonBay Communities is a publicly-traded equity REIT that focuses on apartments catering to the higher-income sectors of the economy. With over 77,600 apartment units, the company strategically selects locations near convenient commodities to meet the rising demand for mixed-use environments.
Did You Know? AvalonBay prides itself on developing and managing more multifamily rental apartment communities than any other American competitor, often expanding in densely populated areas.
Equity Residential
Equity Residential is the third-largest apartment owner in the United States, primarily investing in apartments. While the company experienced significant apartment ownership growth listed on the S&P 500 since 2001, a decline in demand for rented apartments in certain areas led to the sale of several buildings in Manhattan.
Did You Know? Sam Zell and Bob Lurie, the founders of Equity Residential, began their journey by managing student apartment buildings.
Weyerhaeuser
Weyerhaeuser is one of the world's largest private owners and managers of timberlands, with 12.4 million acres in the United States and 14 million acres in Canada. Beyond timberlands, the company is a leader in lumber sales, and it has grown significantly since its humble beginnings.
Did You Know? The Weyerhaeuser Company was founded by Frederick Weyerhaeuser, a German-born immigrant and sawmill worker.
Equinix, Inc.
Equinix, an American multinational company, specializes in services related to internet connectivity. With a global network of colocation data centers, Equinix allows customers to rent space, bandwidth, and equipment. Collaborating with ScienceLogic, Equinix streamlines customers' access to the public cloud.
Did You Know? Equinix is an industry leader in Singapore and has invested $85 million in constructing its fourth data center in the city.
ProLogis
ProLogis is the result of the merger between AMB Property Corporation and ProLogis, forming the world's largest industrial real estate company. With around 3,300 industrial facilities in 19 different countries, ProLogis focuses on managing and developing warehouses and distribution centers.
Did You Know? ProLogis received NAREIT's Industrial Leader in the Light Award for six consecutive years, showcasing the company's commitment to environmentally friendly real estate practices.
Public Storage
Public Storage is the leading self-storage brand in America, owning 44,000-52,000 self-storage facilities, more than any other company. While "Public Storage" is sometimes used generically, it is an individual brand that does not encompass all public self-storage companies. Interestingly, the company's first customer stored spare oil cans at their facility on their wife's request while working for STP Motor Oil.
Did You Know? In 2017, Public Storage earned double the revenue of the next-largest storage company, Extra Space Storage.
Crown Castle International Corp.
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Crown Castle is the largest provider of shared communications infrastructure in the United States. With 40,000 cell towers and approximately 60,000 route miles of fiber, the company has benefited from the growing demand for mobile devices and wireless communication. As appliances and autonomous cars embrace digital technology, Crown Castle anticipates further success.
Did You Know? Crown Castle has entered into tower leasing agreements with major names such as T-Mobile USA and AT&T Mobility.
Simon Property Group
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Simon Property Group is the largest publicly-traded retail real estate investment trust in the United States in terms of revenue. As the largest shopping mall operator in the country, the company manages and develops retail properties, including Simon Premium Outlets and The Mills.
Did You Know? Simon Property Group is publicly traded on the New York Stock Exchange and has appeared on the Fortune 500 list for five years.
American Tower
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The American Tower Corporation is the world's largest REIT by market capitalization. Established in 1995 as a unit of American Radio Systems, it became an independent entity after partnering with the CBS Corporation. Officially becoming a REIT in 2012, American Tower achieved a milestone of 50,000 communications sites within the same year.
Did You Know? American Tower now owns or manages 170,000 sites and employs 4,752 people. With offices worldwide, the corporation has experienced consistent revenue growth in recent years.
Regardless of their specific areas of investment, these ten REITs have established themselves as leaders in their respective markets. As the real estate industry evolves, these companies continue to shape the landscape of income-producing real estate.