What is a Real Estate Investment Trust? A (REIT) is a company that holds, and most of the time operates, income generating real estate. REITs hold all sorts of commercial real estate, from office and apartment complexes to shopping centers, warehouses, hotels, hospitals and commercial forests. Some REITs participate in financing real estate.
Nearly all countries’ laws on REITs grant a real estate company to reduce corporate and capital gains taxes. REITs have been disparaged as permitting speculation on housing, and reducing housing affordability, in the absence of increasing finance for building.
REITs are publicly traded on major exchanges, publicly registered but aren’t listed, or private. The two main groups of REITs are equity REITs and mortgage REITs (mREITs). In November 2014, equity REITs were assigned their own asset class by S&P Dow Jones Indices and MSCI in the Global Industry classification standard. The crucial statistics to assess the financial health and operation of a REIT include net asset value (NAV), adjusted funds from operations (AFFO), and funds from operations (FFO).
What Is A Real Estate Investment Trust? Conclusion
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