Are REITs the Solution to Direct Property Holding Challenges for Pension Funds?
After years of relentless advocacy by the investment management community for the enactment of required legislation, finally there is now in place the regulatory framework that governs the creation of REITs.
Modeled along fund structures, REITs (Real Estate Investment Trusts) are a special type of professionally managed legal entities that own real estate properties, mortgages or both, and they are generally traded on public exchanges, similar to traditional stocks. These entities have to meet a number of requirements to qualify as REITs, and in turn, they offer a number of huge tax benefits to investors. REITs that own physical properties directly are classified as equity REITs. Mortgage REITs, on the other hand, issue and hold debt tied to real estate. In most cases, REITs invest in a single property type such as office, retail, industrial, distribution centres, warehouses or even unique property types such as data centers or telecom towers. Continue reading: Are REITs the Solution to Direct Property Holding Challenges for Pension Funds