Real estate investment trust

A real estate investment trust (REIT, pronounced "reet"^[1]) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, studios, warehouses, hospitals, shopping centers, hotels and commercial forests.^[2] Some REITs engage in financing real estate.

Most countries' laws on REITs entitle a real estate company to pay less in corporation tax and capital gains tax.^[3] REITs have been criticised as enabling speculation on housing, and reducing housing affordability, without increasing finance for building.^[4]

REITs can be publicly traded on major exchanges, publicly registered but non-listed, or private.^[5]^[6] The two main types of REITs are equity REITs^[7] and mortgage REITs (mREITs).^[8] In November 2014, equity REITs were recognized as a distinct asset class^[9] in the Global Industry Classification Standard by S&P Dow Jones Indices and MSCI. The key statistics to examine the financial position and operation of a REIT include net asset value (NAV), funds from operations (FFO), and adjusted funds from operations (AFFO).^[10]

^ Malkiel, Burton G. (2018). A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (completed revised and updated ed.). W. W. Norton & Company.
^ "Real Estate Investment Trusts (REITs)". Retrieved 21 July 2022.
^ E.g. Corporation Tax Act 2010 s 519 in the UK.
^ See A. O'Sullivan (2006), "Residential shut out fears for UK Reits played down after German move". CityWire.
^ Cite error: The named reference what was invoked but never defined (see the help page).
^ Green, Richard K.; Rhea, Parker. "Listed and Non-Listed Reits: Exploring the Cost Difference" (PDF). USC Lusk Center for Real Estate. University of Southern California. Retrieved 13 December 2018.
^ "Guide to Equity REITs". reit.com. Retrieved 4 December 2014.
^ "Guide to Mortgage REITs". reit.com. Retrieved 4 December 2014.
^ "Real Estate Slated for Eleventh Headline Sector in GICS®". reit.com. Retrieved 4 December 2014.
^ "The Most Important Metrics for REIT Investing". Simply Safe Dividends. Retrieved 16 March 2021.

[1] Malkiel, Burton G. (2018). A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (completed revised and updated ed.). W. W. Norton & Company.

[2] "Real Estate Investment Trusts (REITs)". Retrieved 21 July 2022.

[3] E.g. Corporation Tax Act 2010 s 519 in the UK.

[4] See A. O'Sullivan (2006), "Residential shut out fears for UK Reits played down after German move". CityWire.

[what-5] Cite error: The named reference what was invoked but never defined (see the help page).

[6] Green, Richard K.; Rhea, Parker. "Listed and Non-Listed Reits: Exploring the Cost Difference" (PDF). USC Lusk Center for Real Estate. University of Southern California. Retrieved 13 December 2018.

[7] "Guide to Equity REITs". reit.com. Retrieved 4 December 2014.

[8] "Guide to Mortgage REITs". reit.com. Retrieved 4 December 2014.

[9] "Real Estate Slated for Eleventh Headline Sector in GICS®". reit.com. Retrieved 4 December 2014.

[10] "The Most Important Metrics for REIT Investing". Simply Safe Dividends. Retrieved 16 March 2021.

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]