REIT

Real Estate Investment Trust

An investment company that invests exclusively in real estate and mortgages. The REIT issues a fixed number of shares at its establishment, and afterward neither increases nor decreases the number of shares. An REIT is actively managed, meaning that the real estate underlying the trust change from time to time in accordance with the fund's investment goals. A shareholder may trade shares in the REIT as if they were stocks. The value of shares in a real estate investment trust is determined by supply, demand, and the trust's net asset value. Importantly, the REIT itself is not taxed; rather taxes are passed on to shareholders.

REIT

See real estate investment trust.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Real estate investment trust (REIT).

REITs are publicly traded companies that pool investors' capital to invest in a variety of real estate ventures, such as apartment and office buildings, shopping centers, medical facilities, industrial buildings, and hotels.

After an REIT has raised its investment capital, it trades on a stock market just as a closed-end mutual fund does.

There are three types of REITs: Equity REITs buy properties that produce income. Mortgage REITs invest in real estate loans. Hybrid REITs usually make both types of investments.

All three are income-producing investments, and by law 90% of a REIT's taxable income must be distributed to investors. That means the yields on REITs may be higher than on other equity investments.

REIT

See real estate investment trust.

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References in periodicals archive

THE Insurance Commission (IC) has issued a circular in line with allowing insurance and pre-need companies to invest in Real Estate Investment Trusts (REITs), to help them prepare for the government's 'Build, Build, Build' (BBB) infrastructure program.

IC allows insurance, pre-need companies to invest on REITs

Funa said all REITs must first be approved by the Securities and Exchange Commission (SEC).

Rules on insurers' investments in REITs finally out

This can be attributed to the claim of market players that legal and administrative requirements have made investment in the Philippine REIT market difficult," Funa said.

Insurers now allowed to invest in REITs

ISE-REIT Director Aftab Ahmad Ch on the occasion gave a detailed presentation on the issues faced by the REIT sector and proposals for the growth of the same.

ISE-REIT proposes separate regulatory authority for real estate sector

Whilst the UAE REIT Regulations have sought to clarify the pre-existing UAE REIT regime, there are still areas of ambiguity, including the types of real estate that fall within the definition of 'real estate assets' and uncertainty with respect to governance and valuation practices.

Real Estate Investment Funds in the UAE: The Key Aspects of Administrative Decision No. (6/R.T) of 2019 Concerning Real Estate Investment Fund Controls

CVMC REIT II has obtained fully committed financing from SunTrust Bank and KeyBank National Association to ensure all necessary capital available to fund the transaction.

Carter Validus Mission Critical REIT, Carter Validus Mission Critical REIT II to Merge

Historically, REITs developed in the US as a means for a real estate company or trust to mitigate its tax liability.

How REITs thrive in the UAE

The study, The Emergence of Real Estate Investment Trusts in the Middle East, launched by PwC Middle East, finds that market capitalisation of Reits compared to listed real estate companies in the UAE is around 3 per cent.

Middle east reits penetration to grow

It may be noted that regulatory framework for REITs was initially introduced by SECP in 2008

RCCI lauds SECP reforms in REIT

Mortgage REITs: This type of REITs do not own the properties themselves, but the debt on the properties.

All you want to know about REITs and its types