Investors are beginning to take new look at real estate and real estate stocks. Some REITs such as FRT (Federal Realty Trust), BXP (Boston Properties) and BDN (Brandywine Realty) have displayed truly impressive performance during this most recent stock market rally. HPT (Hospitality Trust) has also run up nicely and is now closer to $20.00 than it is to $10. There is reason for cautious optimism.

More and more real estate investors are discovering opportunity in a somewhat obscure class of securities called Master Limited Partnerships (MLPs). Although MPL units trade just like REIT shares, they distribute income and capital gains differently and have different tax ramifications. MLPs are not for everyone, but learning the basics could be rewarding for an investor who takes the time to understand them.