Definitions for "Real estate investment trust"
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A real estate investment trust is an investment scheme in which funds collected from investors are used to purchase real estate properties and returns in the form of rentals and profit from eventual sales of properties are paid to investors as dividends. The scheme was introduced in the U.S. in the 1960s as a means to allow small-lot investors to invest in properties. It once lost popularity in the U.S. amid the slumping real estate market, but regained momentum in the 1990s, drawing massive funds. A REIT is a kind of corporate-type investment trust fund which debuted in Japan in Dec. 1998. In the U.S., a trust which pays 95% of earnings to investors as dividends can enjoy an exemption from corporate tax. According to the National Association of Real Estate Investment Trusts in the U.S., 213 REITs were listed on the U.S. stock market as of May 1999, with market capitalization totaling 145 billion dollars. Japan's REIT market was launched on April 1, 2001, based on an amendment to the investment trust law in November 2000. REIT funds are expected to have more than 600 million yen in assets by the end of March 2002.
A publicly traded security representing holdings in real estate investments. A REIT is not an investment company, nor is it a DPP.
Unincorporated group of 100 or more investors who have limited liability.
Corporation or other organization specializing in real estate investments. Typically, funds are raised by selling ownership shares in the trust. Many REITs trade publicly.
A publicly traded company that buys and manages a portfolio of properties or mortgages, or a combination of both.
(See REIT)
A corporation or trust that uses the pooled capital of many investors to purchase and manage income property (equity REIT) and/or mortgage loans (mortgage REIT). REITs are traded on major exchanges just like stocks. They are also granted special tax considerations and provide a liquid way to invest in real estate, an otherwise illiquid market.
an investment in real estate or loans secured by real estate
A company that specializes in real estate investments. A REIT must meet strict ownership, investment, and income distribution tests to qualify for tax treatment as a REIT. REIT's allow individual investors to diversify their real estate investments.
An investment vehicle where title to real estate assets is held and managed by one or more trustees who control acqui-sitions and investments much like a mutual fund.
An investment trust that specializes in investing in real estate related investments including mortgages, construction loans and real property in varying combinations.
A trust that uses investors money to purchase and manage real estate. Investors realize some of the tax advantages in owning real estate.
A publicly traded company that manages a portfolio of real estate to earn profits for shareholders. Patterned after mutual funds, REITs hold a diverse portfolio of real estate such as apartment buildings, offices, industrial warehouses, shopping centers, hotels and nursing homes. Shareholders receive income in the form of dividends from the rents received on the property. To avoid taxation at the corporate level, 75% or more of a REITâ€(tm)s income must come from real property and 95% of its net earnings must be distributed to shareholders annually. Because REITs must distribute most of their earnings, REITs pay high yields of 5% to 10% or more.
Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits to the investors free of corporate income tax.
an organization, usually corporate, established for the accumulation of funds for investing in real estate holdings. It pays out an established percentage of funds from operations in the form of a dividend to investors, in order to retain certain tax advantages.
Investor-owned trust which invests in real estate and, instead of paying income tax on its income, reports to each of its owners his or her pro rata share of its income for inclusion on their income tax returns. This unique trust arrangement is specifically provided for in the internal revenue code.
A company that manages a group of real estate investments and distributes to its shareholders at least 95% of its net earnings annually. REITs often specialize in a particular kind of property. They can, for example, invest in real estate such as office buildings, shopping centers, or hotels; purchase real estate (an equity REIT); and provide loans to building developers (a mortgage REIT).
A company that manages a portfolio of real estate investments, similar to closed end mutual funds.
A REIT is a company dedicated to owning, and in most cases, operating income-producing real estate, such as apartments, shopping centers, offices and warehouses. Some REITs also engage in financing real estate.
( REIT) - A portfolio of professionally managed real estate properties securitized into stock-like units, distributable for wide public ownership. Usually designed principally to provide current income.
an investment trust that owns and manages a pool of commercial properties and mortgages and other real estate asssets; shares can be bought and sold in the stock market
A type of investment that pools the money of many individuals and acquires real estate or mortgages that are then owned proportionally by each investor.
A REIT is essentially a corporation or business trust that combines the capital of many investors to acquire or provide financing for all forms of real estate. A REIT generally is not required to pay corporate income tax if it distributes at least 95% of its taxable income to shareholders each year.
A company, often with shares traded on a stock exchange, that manages a portfolio of real-estate holdings. REITs pool investors' capital to invest in real estate such as apartment or office buildings or shopping centers.
A term used in the United States to describe investment funds that invest in real estate and/or mortgages secured by real estate.
A corporation, trust, or association in which investors pool funds for investments in real estate but avoid double taxation as a corporation.
A company, usually traded publicly, that manages a portfolio of real estate to earn profits for shareholders.
An investment trust that operates through the pooled capital of many investors who buy its shares. Investments are either in direct ownership of income property or mortgage loans.
An investment trust that specializes in real estate related investments including mortgages, construction loans, land and real estate securities in varying combinations.
A REIT is a company that owns and manages many types of income-producing real estate, including office and apartment buildings, shopping malls, and hospitals.
A trust that invests primarily in real estate and mortgages and passes income, losses, and other tax items to its investors. REITS are typically classified as a security and are therefore not exchangeable.
Is a special structure which holds real properties. These properties can be apartments, shopping malls, office buildings or other acceptable real assets. The trust must distribute 95 percent of its income to the shareholders in order to qualify for special tax treatment.
An investment company t invests in real estate properties and/or mortgages.
An investment vehicle established for the benefit of a group of real estate investors. A reit is an unincorporated trust or association, managed by one or more trustees who hold title to the assets of the trust and control its acquisitions and investments. Real estate investments commonly include office buildings, apartment houses and shopping centers.... read full article
(REIT) A highly liquid investment that provides investors with the ability to invest in a portfolio of real estate properties. REITs are companies that buy, sell and manage real estate assets. Shares in REITs are traded on major exchanges.
specialized form of equity that allows investors to own a portion of a group of real estate properties. REITâ€(tm)s pay out 95% of their earnings in the form of dividends.
Pooled funds that purchase and hold commercial real estate.
A primarily real estate and mortgage trust that passes losses and income to its investors.
An investment vehicle in which investors purchase certificates of ownership in the trust, which in turn invests the money in real property and then distributes any profits to the investors. The trust is not subject to corporate income tax as long as it complies with the tax requirements for a REIT. Shareholders must include their share of the REIT's income in their personal tax returns. (Barron's Dictionary of Real Estate Terms and Encyclopedia of Real Estate Terms 2nd Edition, Damien Abbott)
Real Estate Mortgage Investment Conduit (Remic)
A legally constituted organisation (entitled to preferential tax treatment) which enables investors to own and transfer shares of an interest in a property or properties; the shares can be dealt with in a manner similar to corporate stock. In order to qualify, a trust must be formed by at least 100 shareholders and invest most of its capital in real estate loans or properties and receive income from them. The special feature is that such a trust reduces its own taxable income by a distribution to shareholders with no tax deducted, but this is taxable income in the hands of shareholders according to their own tax status. To maintain the trust's right to gross distributions these must, in aggregate, be equal to minimum of 90% of the total trust income.
A company that owns and manages a portfolio of real estate properties. REITs serve as conduits through which rental income is passed from real estate holdings to shareholders.
An organization similar to an investment company but concentrating its holdings in property or real estate investments. Real estate investment trusts are required to distribute as much as 90% of their income so the yield is generally very attractive.
(REIT) A real estate mutual fund, established by income tax laws to avoid the corporate income tax. It sells shares of ownership and must invest in real estate or mortgages.
A fund that holds real estate or mortgages. REITs issue shares that trade on stock exchanges like shares of common stock. There are three types of REITs: mortgage REITs that invest primarily in real estate debt such as mortgages; equity REITs that primarily own real estate; and hybrid REITs that are a combination of the two.
A closed-end investment company whose underlying assets are invested in real estate; the REIT is a conduit, and its earnings flow through to its investors.
A specialized form of holding title to property that enables investors to pool their resources and purchase property, while still receiving considerable tax advantages, without being taxed as a corporation. Also known as REIT. Back to the Top
REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund.
Real estate investment trusts are like a mutual fund of real estate investments. Such trusts invest in a collection of properties (from shopping centers to apartment buildings). REITs trade on the major stock exchanges. If you want to invest in real estate while avoiding the hassles inherent in owning property, real estate investment trusts may be the right choice for you.
A corporation or trust that uses the pooled capital of many investors to invest in direct ownership of either income property or mortgage loans. These investments offer tax benefits in addition to interest and capital gain distributions.
A method of pooling investment money using the trust form of ownership. In the 1960s Congress provided favored tax treatment for certain business trusts by exempting from corporate tax certain qualified REITs that invest at least 75 percent of their assets in real estate and that distribute 95 percent or more of their annual real estate ordinary income to their investors. As an alternative to the partnership or corporate methods of investing in real estate, the REIT offers some of the flow-through tax advantages of a partnership or syndication while retaining many of the attributes and advantages of a corporate operation. (See noninstitutional lenders)
An organization similar to an investment company in some respects but concentrating its holdings in real estate investments. The yield is generally liberal since REITs are required to distribute as much as 90% of their income. (See: Investment company)
An organization, similar to an investment company, which invests in real estate loans (mortgages and trust deeds) and/or has equity interests in real estate.
A kind of "mutual fund" that invests in real estate rather than stocks and bonds.
A collective investment scheme that allows tax efficient investment in property... more on Real estate investment trust
A Real Estate Investment Trust is a corporation whose primary business is owning and managing real estate properties, such as apartment buildings, office buildings, hotels, warehouses, health care facilities, shopping malls, or golf courses. While many REITs invest directly in these properties, some types of REITS also can invest in real estate related loans, such as mortgages. A hybrid type of REIT can invest in a combination of real properties and mortgages. Structurally, a REIT is set up as a company, shares of which may be purchased by investors. The management of the REIT company uses those pooled investment dollars to buy and manage an array of properties. Collectively, all shareholders indirectly own small pieces of each of the properties that the REIT owns and operates.
(REIT) — A REIT invests in real estate and/or in mortgages secured by real estate. A REIT issues shares that can be purchased or sold on the open market.
A conduit (pass-through) program in which investment funds of many investors are pooled together to fund real estate development; REITs may be classified as mortgage, equity, or hybrid. Trust shares are as liquid as shares of stock, and are traded on public stock exchanges.
an investment in the proceeds derived from real estate investments; typically a REIT will distribute gains from land use fees (sharing mine or oil field profits with a mining company or drilling company) or proceeds from direct leases.
A closed end investment company investing in various ventures related to the field of real estate.
A special arrangement under Federal and State law whereby investors may pool funds for investments in real estate and mortgages and yet escape corporation taxes; requires one hundred persons or more.
An investment company that buys real estate properties or mortgages and administers essentially all the profits onto its shareholders.
A company in which investors pool their funds to purchase and manage real estate or to finance construction.
A closed-end investment company that specializes in real estate or mortgage investments.
An organization of individuals who purchase certificates of ownership in the trust, which then invests their money in real property, distributing the profits back to the individual investors free of corporate income tax
Real Estate Investment Trust is the name expansion for REIT. It is a corporation that uses the pooled in capital of many investors to purchase and manage income property and mortgage loans. They are usually traded like stocks. Equity REIT is a REIT that takes the ownership position in a real estate investment.
A corporation or trust that uses money from many investors to purchase and manage property for the purpose of making money. REITS are often publicly held.
Also known as a REIT; it is a business trust established to deal with the purchase of real property interests, mainly land.
a company that invests in a portfolio of real estate properties and passes the profits through to its shareholders
Publicly traded company that owns, develops or operates commercial properties.
A real estate investment trust is a private or public corporation (or trust) that enjoys a special status under the U.S. tax code that allows it to pay no corporate income tax so long as its activities meet statutory tests that restrict its business to certain commercial real estate activities. Most states honor this federal treatment and do not require REITs to pay state income tax. By law, REITs must pay out 90% of their taxable income.
An investment vehicle that invests funds on behalf of its investors in real estate-related investments such as construction loans, mortgages, land and real estate company securities.
An investment trust whose objective is to hold real estate-related assets, either through mortgages, construction and development loans, or equity interests. In order to retain REIT status, current regulations require 95% of all net income to be passed through to shareholders.
REIT An organization, usually corporate, established to accumulate funds for investment in real estate holdings, or to extend credit to others engaged in construction. Funds for investment are usually accumulated by selling shares of ownership in the trust.
A corporation or trust for the securitization of real estate property and loans. REITs are traded on an exchange, so are usually more liquid than individual properties.
Called a REIT. A trust that invests primarily in real estate and mortgages and passes income, losses and other tax items to its investors.
A mutual fund that sells shares of ownership and must be invested in real estate or mortgages.
REIT A business entity formed to invest in real estate, mortgages and/or securities backed by real estate. REITs are required to pass through 95% of taxable income to their investors and are not taxed at the corporate level. The three major types of REITs are equity, mortgage and hybrid, with equity being the dominant type.
A corporation or trust, often publicly held, that uses the pooled capital of multiple investors to purchase and manage mortgage loans (mortgage REIT) and income property (equity REIT). Reinvented from REITs of the past, today's REITs are a growing force in the real estate investment market.
Publicly traded companies that own, develop, and operate commercial properties.
A Real Estate Investment Trust or REIT (rēt, rhymes with treat) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return REITs are required to distribute a large majority of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.