Answers to All Your REIT Queries

Real Estate Investment Trust (REIT) is an investment vehicle which gives investors an opportunity to participate in the revenue earned from hotels, office buildings, residential properties, and interests in mortgage securities and/or other assets held by the TRUST. Essentially, investors act as a conduit and provide the REIT with the funds needed to purchase the underlying assets with intent of collecting future payouts.

Answers to All Your REIT Queries

+ Answers to All Your REIT Queries

Recently, SEBI relaxed REIT Regulations and made it the investment process simpler for the people which resulted in a stock surge to 4 percent. However, many of the Indian investors do not have a fair idea about the REITs because of which they don’t give it a thought.

So, we have come up with the answers to a few common REIT related questions and confusions: [Read more…]

All You Need to Know about Real Estate Investment Trust

A Real Estate Investment Trust (REIT) is a company that own or finances the income production in real estate sector. This is modelled after mutual funds and allows everyone to invest in portfolios of large scale properties the same way they invest in other industries through purchase of stocks. The stockholders of REITs earn a share of the income produced through real estate investment. Publicly traded REITs offer investors the benefits of commercial real estate investment along with advantages of investing in publicly traded stock.All You Need to Know about Real Estate Investment Trust

Most REITs operate along a straightforward and easily understandable business model. By increasing rents and property occupancy over time, higher levels of income may be produced. REITs in other countries have demonstrated a historical track record giving good income and long term share price appreciation, inflation protection and prudent diversification for investors. So REITs financial benefits can be sum totaled under the following headings:

  • Diversification- Increased return; reduced risk

  • Inflation Protection- Natural Inflation Hedge.

  • Liquidity- Portfolio rebalancing [Read more…]