What Are REITs? Features, Investments & Returns
Real Estate Investment Trusts ( REITs) are businesses that own or finance income- producing real estate in a range of real estate sectors.
Due to the mutual fund foundation of REITs, investors have a more liquid option for purchasing real estate.
It is a kind of security that offers all investors, no matter how big or small, a source of consistent income, portfolio diversity, and long-term capital growth.
- There must invest at least 75% of its assets in cash, treasuries, or real estate.
- Real estate investments must account for 75% of its gross revenue.
- REITs must pay shareholders dividends that are at least 90% of their taxable income.
Investments & Types
There are total 5 types of REITs, which includes: 1. Retail REITs - Invest in shopping malls and freestanding retail .2.
Residential REITs - Buy and operate apartment buildings, gated communities, and other such housing establishments. 3.
Healthcare REITs - These REITs invest primarily in real estate for hospitals, health clinics, medical establishments, etc. 4. Resort REITs
Top 3 REITs In India & Their Returns
The top 3 REITs in India are Embassy Office Parks REITs, Mindspace Business Parks REITs, and Brookfield India Real Estate Trust.
The REIT's current market price is Rs 338.50 on NSE.
It has fallen 1 .09 % in the last 1 week, 0 .29 % in 1 month and 5 .5 % in the last 3 months, respectively. It has fallen 3 .18 % in the last 1 year.
The REIT since its listing date on 7 August 2020 has gained 11.46%.
By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt