Definition : REITS Real Estate Investment Trusts in Asia

Real Estate Investment Trusts in Asia Author : Scott Carnachan Email: scott.carnachan@deacons.com.hk Tel: +852 2825 9797 (GMT +08:00 hours) Based in: Hong Kong Start : WHAT IS A REIT? A REIT is an investment vehicle that invests in real property, such as office buildings, business parks, shopping malls, hotels and serviced apartments. It normally distributes all or almost all of its net income to investors on an annual or semi-annual basis. Interests in REITs are usually listed and traded on a stock exchange. Investors do not normally have the right to require the REIT to redeem investors interests (in contrast to open-ended mutual funds and unit trusts). REITs can be structured either as a company (as in the US) or as a unit trust (as in Australia). They can either be self-managed (as in the US) or can appoint a third party management company to manage their investments. Most jurisdictions in Asia that have permitted REITs require an external manager. It is also common to appoint a property manager (often a related party of the original property owner) to provide property management services for the properties the REIT owns. ( continued CLICK ON LINK ABOVE )