Real estate investment trust is a real estate investment trust. Reits can be divided into equity type, mortgage type and mixed type from the perspective of capital investment; From the perspective of fund raising and circulation, it can be divided into public offering reits and private offering REITs; From the organizational form, it can be divided into company type and trust type. Take the purchase methods of public r eits and private reits as an example: public reits cannot be purchased at present, and there are no relevant policies and platforms in China to support users' purchase. But you can buy private real estate investment trusts. Users can buy through the Hong Kong Stock Exchange market. There are many reits listed on the HKEx market, and they can also be purchased by opening US stock accounts.

REITs (Real Estate Investment Trust Fund) is a kind of trust fund, which collects the funds of a specific majority of investors by issuing income certificates, manages real estate investment by specialized investment institutions, and distributes the comprehensive investment income to investors in proportion. Different from the purely private nature of trust in China, REITs in the international sense are equivalent to funds in nature, with a few private placements, but most of them are public offerings. REITs can operate in a closed mode or be listed and traded, similar to open-end funds and closed-end funds in China. In the past two decades, the return of REITs in North America is the best (13.2%), followed by Europe (8. 1%), and the average return of REITs in Asia is the lowest (7.6%). Due to the impact of the European debt crisis, the yield of REITs in Europe dropped rapidly to -9.2%, while the average return of REITs in North America was 12.0%. It can be seen that in different time intervals, the real estate prosperity of different countries and regions is often very different.

The characteristics of real estate investment trust funds are:

1, income mainly comes from rental income and property appreciation;

2. Most of the proceeds will be used to distribute dividends;

3.REITs have high long-term returns, but it is still controversial whether they can diversify investment risks. Some people think yes, others think no.

According to the organizational form, REITs can be divided into two types: company type and contract type. Corporate REITs are based on the company law, and the funds raised by issuing REITs are used to invest in real estate assets. REITs have independent legal personality, operate funds independently, raise fund shares for unspecified investors, and the holders of REITs share eventually become shareholders of the company. The contractual real estate investment trust, based on the establishment of trust deed, raises funds by issuing beneficiary certificates and invests in real estate assets. Contractual REITs are not independent legal persons, but assets, which are initiated by fund management companies, among which the fund managers are entrusted to invest in real estate as trustees. The main difference between them lies in the different legal basis and operation mode, so contractual REITs are more flexible than corporate REITs. Corporate REITs are dominant in the United States, while contractual REITs are more common in Britain, Japan and Singapore.