What is REIT, How It Works?
REIT is abbreviation of Real Estate Investment Trust. A Real Estate Investment Trust (REIT) is a fund that develops, purchases and sells income-producing real estate. Modeled after mutual funds, REITs provide all types of investors with regular income streams, diversification and long-term capital appreciation.
REITs allow individuals to invest in large-scale properties in a similar way they invest in other industries through purchase of shares.
How REIT Work?
Stock Exchange Listing –>Public and Private Investor –>Investment in REIT Scheme –> Trustees –> Property Valuation –> Purchase of Real Estate –> Rent or Sale Proceeding –> Distribution of Capital and Dividend –> Stock Exchange Listing