Change Is Good: Bigger, Bolder and Better Real Estate Investment Trusts
On Sept. 14, 1960, President Dwight D. Eisenhower took pen in hand and signed the Cigar Excise Tax Extension, formally creating real estate investment trusts, known by the acronym REITs. The intention of Ike and Congress was to give all investors, large and small, the opportunity to invest in portfolios of commercial real estate. Individual investors liked the idea, but it took pension funds almost 30 years to get enthused about publicly traded stocks.