Rabinov Diversified Property Trust
The National Association of Real Estate Investment Trust (NAREIT) lists the number of publicly traded Hybrid Real Estate Investment Trust (REIT) at 7. Interestingly, Hybrid REITs are the only group of REITs to experience a decline in total number in the marketplace. Compared to the eleven-fold increase in Equity REITs and the modest three-fold increase in mortgage REITs in the past 25 years, Hybrid REITs seemed to be languishing.
A more telling sign lies in the capitalization story. In 1972 Hybrid REITs made up 40% of the entire REIT industry market capitalization. Fast forward to 2006 and this percentage now stands at less than 2% and is declining. At this rate Hybrid REITs may no longer exist in the next five to 10 years. Investors are left to wonder, what happened here?

