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Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are instruments available to the public, and their units are traded in the financial market. They are known globally as “REITs” and aim to facilitate investment in the developed and ready-to-use real estate sector that generates periodic income.

Methods of REIT Investments

Public Offering (Primary Market): Investment in these funds occurs when their managers offer the fund units on the market for the first time.

Financial Market (Secondary Market): Investors can buy the fund units after they are offered on the financial market.

REITs Stakeholders

Unitholders: Beneficiaries of investment returns.

Fund Manager: The entity responsible for managing the fund and its investments.

Custodian: The entity responsible for preserving the fund’s assets.

Members of the Board of Directors of the Real Estate Fund: The entity supervising the fund management.

Real Estate Management Company: The entity responsible for managing the properties owned by the fund.

REITs Key Features

Liquidity and Flexibility: Possibility of selling fund units during trading periods.

Low Initial Investment Cost: To join the real estate market.

Periodic Distribution of Profits: Investors benefit from real estate income.

High Transparency: Provides accurate information to investors.

Obligations and Restrictions on the Fund Manager: To protect investors.

Types of Properties Owned by REITs

These funds can own and manage various developed and ready-to-use properties, including residential, commercial, industrial and agricultural properties. They can invest locally and internationally per the regulations of the Capital Market Authority.

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