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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


See real estate investment trust.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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.
Funa said all REITs must first be approved by the Securities and Exchange Commission (SEC).
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.
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.
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.
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.
Historically, REITs developed in the US as a means for a real estate company or trust to mitigate its tax liability.
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.
It may be noted that regulatory framework for REITs was initially introduced by SECP in 2008
Mortgage REITs: This type of REITs do not own the properties themselves, but the debt on the properties.
Four trends are driving equity REIT valuations, according to one portfolio manager.