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, warehouses, hospitals, shopping centers, hotels and commercial forests. 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.^[2] REITs have been criticised as enabling speculation on housing, and reducing housing affordability, without increasing finance for building.^[3]

REITs can be publicly traded on major exchanges, publicly registered but non-listed, or private.^[4]^[5] The two main types of REITs are equity REITs^[6] and mortgage REITs (mREITs).^[7] In November 2014, equity REITs were recognized as a distinct asset class^[8] 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).^[9]

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

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

[what-4] Cite error: The named reference what was invoked but never defined (see the help page).

[5] 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.

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

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

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

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

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