What is a REIT

67 %
33 %
Information about What is a REIT

Published on February 18, 2014




A concise definition of a Real Estate Investment Trust (REIT)

What is a REIT? •A Real Estate Investment Trust. •A company that owns and operates income-producing real estate (land and improvements on it) or real estate-related assets. - Examples of REITs include hotels, apartments and offices. •REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership, without actually having to go out and buy commercial real estate. •REITs may invest in the properties themselves (generating income through the collection of rent) or they may invest in mortgages or mortgage securities tied to the properties (helping to finance the properties and generating interest income). - 90% of listed REITs are Equity REITs and the remaining 10% are Mortgage REITs Originally a U.S. concept, REITs are now global with nearly 30 countries having adopted variations of the U.S. REIT model.

What qualifies as a REIT? • After paying a conversion fee, a REIT escapes corporation tax. It must pay out 90% of its property income to shareholders. To qualify as a REIT a company must: • Invest at least 75% of its total assets in real estate. • Derive at least 75% of its gross income from rents from real property, interest on mortgages financing real property or from sales of real estate. • Pay at least 90 % of its taxable income in the form of shareholder dividends each year. • Be an entity that is taxable as a corporation. • Be managed by a board of directors or trustees. • Have a minimum of 100 shareholders and have no more than 50% of its shares held by five or fewer individuals

References • • •

Add a comment

Related presentations

Related pages

What is a REIT? |

A real estate investment trust, or REIT, is a company that owns, and in most cases, operates income-producing real estate. Some REITs also engage in ...
Read more

Real Estate Investment Trust (REIT) Definition | Investopedia

BREAKING DOWN 'Real Estate Investment Trust - REIT' REITs, an investment vehicle for real estate that is comparable to a mutual fund, allowing both small ...
Read more

What is a REIT (Real Estate Investment Trust)?

It's called a real estate investment trust, or REIT for short. A REIT is a company that owns and manages income-producing real estate.
Read more

REITs - What is a REIT (Real Estate Investment Trust)?

REITs. What is a REIT? That is a very common question. You see, REIT is an acronym for an investment that all dividend-focused investors eventually become ...
Read more

What Is A REIT? • Novel Investor

What Is A REIT? February 26, 2015 by Jon. One of the most popular investments in the past few years have been REITs, or real estate investment trusts.
Read more

What is a REIT? (2013) - YouTube REITs today are more vital to the economy and the investment landscape than ever before -- fulfilling their essential role ...
Read more

What is a REIT? - Guide to Personal Finance for ...

REIT is an abbreviation for "real estate investment trust". A REIT is like a mutual fund that owns individual properties rather than stocks or ...
Read more

What is a REIT? (with pictures) - wiseGEEK: clear answers ...

An REIT is a company that owns and manages income-producing real estate, like apartments. REITs can be quite profitable because...
Read more

What is a REIT? | Real Estate Investment Trust

A Real Estate Investment Trust (REIT) combines capital of many investors to provide financing for all forms of real estate. Learn more about REITs at
Read more

What is a REIT? (English) - YouTube

Want to watch this again later? Sign in to add this video to a playlist
Read more