REITs are publicly traded companies that invest in real estate (although there are also unlisted REITs that canât be traded). REITs give you exposure to the property market without needing to maintain properties themselves and without a huge amount of initial capital.
- The Westfield Group is a REIT that has a huge collection of commercial real estate domestically and in the US and Europe.
- Unlisted REITs are not traded on the ASX and are therefore not regulated by the ASIC. Youâd need to more carefully review their product disclosure statement (PDS).
There are different âflavoursâ of REITS:
- Residential REITs
- Retail REITs
- Office REITs
- Industrial REITs (warehouses and factories)
- Mortgage REITs ⊠and so on.
REITs are obligated by law to pay very large distributions (similar to dividends) to its members/shareholders. These distributions arenât franked.