business
Jan 12, 03:01
Investors seem excited about REITs. But what are they? A REIT, or real estate investment trust, is an entity that owns, operates or finances income-producing properties or real estate. Modelled after MFs, REITs pool money from investors, several usually, on the promise of generating a steady income for them. REITs own many types of commercial real estate, such as office buildings, hotels, etc. Like listed companies have promoters and trade in shares, REITs are backed by ‘sponsors and trade in ‘units . REITs are very popular in US & Singapore. Embassy Office Parks & Mindspace Business Parks backed by Blackstone are two listed REITs in India. A third IPO is expected in 2021 from Canada s Brookfield.