A trust or association that invests in a variety of real estate. REITs are managed by one or more trustees, like a mutual fund, and trade like a stock. No federal income tax needs to be paid by the trust if 75% of the income is real-estate related and 95% of the income is distributed to investors. Individual investors can be taxed.
A legal entity formed by a group of investors who desire to pool their resources for the purpose of real estate investment.
A type of closed-end investment company that invests money, obtained through the sale of shares to investors, in various types of real estate and/or real estate mortgages.
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 percent of their income.
A listed REIT is a vehicle for investment in a portfolio of real estate assets, usually established with a view to generating income for unit holders. REITs assets are professionally managed and revenues generated from assets (primarily rental income) are normally distributed to unit holders at regular intervals. Units of REITs are bought and sold like other securities listed on Singapore Exchange Securities Trading Limited at market-driven prices.
REITs are a specialized form of equity that allows investors to own a portion of a group of real estate properties, although many investors think of them as an alternative to bonds. REITs have become increasingly popular over the past decade. Granted special tax status by the Internal Revenue Service, REITs pay out at least 95% of their earnings in the form of dividends to shareholders, often offering healthy dividend yields of the same magnitude as bonds. Even better, as REITs acquire more property and increase the value of the properties they own, the value of the equity increases as well, providing a nice total return. For more information on REITs, check the website for the National Association of REITS (NAREIT).
REITs invest in real estate or loans secured by real estate and issue shares in those investments. Real estate mutual funds generally invest the majority of their assets in REITs and other related securities.
(1) A form of ownership in which typically smaller investors invest in shares of a trust that accumulates money and invests in real estate through mortgages, equity, or both. REITs can be publicly traded and are highly regulated. (2) A business entity that invests primarily in real estate or real estate mortgages and receives favorable income tax treatment under the Internal Revenue Code.
The trusts are publicly traded companies that own, develop and operate commercial properties.
A trust that uses investors money to purchase and manage real estate. Investors realize some of the tax advantages in owning real estate.
An investment trust that holds a combination of real estate assets, including mortgages and property. REITs are structured somewhat like a mutual fund. However, while mutual fund losses are limited to the amount invested, investors in REITs may be exposed to additional risk. REITs offer certain tax advantages and, unlike a standard trust, an investor in a REIT also is a beneficiary.