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REITs have to distribute out most of their earnings to shareholders. This deprives REITs the needed cash to reinvest into their business to grow organically. Wouldn't this stunt REITs' business growth and price appreciation? If REITs need capital, they ask money from shareholders. This is bad for shareholders and hold back the share price.
How do REITs' price appreciate, given that they do not retain earnings to reinvest back into their business like ordinary companies?