Download - Real Estate Investment Trust
![Page 1: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/1.jpg)
04/11/23 1
REAL ESTATE INVESTMENT TRUST (REIT)
![Page 2: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/2.jpg)
04/11/23 2
REITREIT
• Real Estate Investment Trust
• Investment in immoveable properties
• Real Properties
• Offer stability because the properties owned should continue to generate rental income.
![Page 3: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/3.jpg)
04/11/23 3
Why REIT
• Minimum Investment• Low risk• Income stability• Diversification• Both Stock and Real Estate• Liquidity-as traded security• Tax advantages• Quality real estates• Expert Management
![Page 4: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/4.jpg)
04/11/23 4
What is REIT?
• A corporation, business trust or association primarily developed to own or finance real estate
• There are board of directors-trustee
• REIT must not engage in short-term property holdings that are sold for quick profits.
![Page 5: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/5.jpg)
04/11/23 5
TYPES OF REIT
EQUITY REIT
HYBRID REIT
MORTGAGE REIT
![Page 6: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/6.jpg)
04/11/23 6
Mortgage REITs
• Mortgage REITs do not own real estate but rather make loans that enable others to buy real estate
• Invest money in short term or long term mortgages and derive income from fees and interests on the loans
![Page 7: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/7.jpg)
04/11/23 7
Equity REITs
• Invest directly in real estate assets • The goal is to invest primarily in income-
producing properties• Equity REITs acquire properties that will
increase in value and whose rental stream will increase
• Shareholders will receive dividends from rents and sale of properties, benefits from rental income and from appreciation in the value of properties.
![Page 8: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/8.jpg)
04/11/23 8
Hybrid REITs
• Combination of both equity and mortgage REITs
• Invest in both real estate and mortgage interest.
![Page 9: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/9.jpg)
04/11/23 9
Legal And Regulatory Framework
• Securities Commission Act 1993
• Guidelines on Real Estate Investment Trusts
![Page 10: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/10.jpg)
04/11/23 10
Parties in REIT
1) Management Company-subsidiary of financial companies, or property development company
2) Trustee- a trust company registered under the TCA 1949 or pursuant to PTCA 1995
3) Purchasers of the shares/Beneficiaries
- Passive investors- may choose which company to invest but will not be able to dictate types of shares to be bought-has no say.
![Page 11: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/11.jpg)
04/11/23 11
ISLAMIC REAL ESTATE INVESTMENT
• Interest
• Types of properties
• Halal/haram business
• Board of Syaria’ Panel
![Page 12: Real Estate Investment Trust](https://reader036.vdocuments.us/reader036/viewer/2022082920/554c3b75b4c90530668b486d/html5/thumbnails/12.jpg)
04/11/23 12
• Roxburgh J in Re a Solocitor [1952] Ch 328, 332 said “ as the principles of equity permeate the complications of modern life, the nature and variety of trust ever grow”
• Moral of the dicta: Trust is growing and may defeat the orthodox definition of trust