REITS

DEFINITION• IS AN INSTITUTION OF PROPERTY OR REAL ESTATE COMPANY THAT RAISE

FUND FROM INVESTOR FOR THE PURPOSE OF BUYING, MANAGING AND SELLING THE REAL ESTATE.

• EARN INCOME FROM BUILDING APARTMENTS, OFFICE OR RESIDENTIAL BUILDING

• SHAREHOLDERS GETS THROUGH PROFIT OF RENTAL, LEASING AND SALES OF PROPERTIES.

TYPE OF REITS1. EQUITY REITS• Equity REIT is a REIT that invests directly by buying property. • So, he became the owner of the property and is responsible for the

real estate value or equity. This type of REIT income is rental income from that property.

2. Mortgage REITs • These REITs lend money to consumers to buy property or real estate.• Reits mortgage income is from interest rate from loan.

3.HYBRID REITS- The combination of equity and mortgage reits• namely property assets and property credit assets.

ADVANTAGES AND DISADVANTAGESADVANTAGES DISADVANTAGES

HIGH DIVIDEND RISK OF MARKET DEMAND AND SUPPLY OF INTEREST RATE THAN THAT AFFECT THE PRICE REITS

• professional Management • properties REIT is managed by

professionals

Returns are not guaranteed.• Returns are subject to the performance

of the property market• decreased property values = devaluation

REITsLiquidity• Easily purchased and sold

The lack of control over investment•   Investors do not have direct control

over the management company