Infrastructure REITs operate and own real estate which pertains to infrastructure, including fiber cables, wireless infrastructure, telecommunications towers and energy pipelines. These REITs can be wrapped into the private sector or occasionally do a great deal of government contracting, depending on the asset class they focus on.
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.
There are 6 infrastructure REITs currently trading on major US stock exchanges. Large infrastructure REITs include American Tower Corporation (NYSE: AMT), Crown Castle International Corp (NYSE: CCI) and SBA Communications Corp. (NASDAQ: SBAC).