A Real Estate Investment Trust or REIT (pronounced /ˈriːt/) is a tax To tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law designation for a corporation A corporation is an institution that is granted a charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business investing in real estate Real estate is a legal term that encompasses land along with improvements to the land, such as buildings,fences, wells and other site improvements that are fixed in location -- immovable. Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction and include things such as commercial that reduces or eliminates corporate income taxes Corporate tax refers to a tax levied by various jurisdictions on the profits made by companies or associations. It is a tax on the value of the corporation’s profits. The general global trend of national corporate taxation is downwards - In the last ten years average rates fell from 35.0% to 26.30%. In return, REITs are required to distribute 90% of their income Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received... in a given period of time.", which may be taxable, into the hands of the investors The term has taken on a specific meaning in finance to describe the particular types of people and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company. Less frequently, the term is applied to parties who purchase real estate, currency, commodity derivatives, personal property,. The REIT structure was designed to provide a similar structure for investment Investment is the active redirection of resources/assets to creating benefits in the future; the use of resources/assets to earn income or profit in the future. It is related to saving or deferring consumption.[citation needed] Investment is involved in many areas of the economy, such as business management and finance no matter for households, in real estate as mutual funds A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically provide for investment in stocks Stocks are devices used since medieval times for torture, public humiliation, and corporal punishment. The stocks partially immobilized its victims exposing them in public place to the scorn of the local people, who often took to insulting, kicking, spitting and in some cases urinating and defecating on its victims.
Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges A stock exchange is a mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The like shares of common stock Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc. On the other hand, common shares on average perform better than in other firms.
REITs can be classified as equity At the start of a business, owners put some funding into the business to finance assets. Businesses can be considered to be, for accounting purposes, sums of liabilities and assets; this is the accounting equation. After liabilities have been accounted for, the positive remainder is deemed the owner's interest in the business, mortgage A mortgage is the transfer of an interest in property to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be or hybrid.
The key statistics A statistic is the result of applying a function (statistical algorithm) to a set of data to look at in a REIT are its net asset value Net asset value is a term used to describe the value of an entity's assets less the value of its liabilities. The term is most commonly used in relation to open-ended or mutual funds due to the fact that shares of such funds are redeemed at their net asset value. However, the term may also be used as a synonym for book value or the equity value of (NAV), adjusted funds from operations (AFFO) and cash available for distribution (CAD). REITs face challenges from both a slowing economy and the global financial crisis The financial crisis of 2007–2009 has been called the worst financial crisis since the one related to the Great Depression by leading economists, and it contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars, substantial financial commitments incurred by governments, and a significant, depressing share values by 40 to 70 percent in some cases.[1]
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Ready for take off PIR s 10 year forecast is for the global real estate investment trust market to grow by 400 per cent Photo David Gray
