1 Mandatory dividends: In mature markets such as the United States, REITs are legally required to distribute most of their earnings (usually more than 90% of profits) to unit holders.

2 Low-leverage operation: In most countries and regions, the law has clear maximum leverage ratio restrictions on REITs. For example, Singapore stipulates that the leverage ratio of REITs cannot exceed 35%, and the Securities Regulatory Commission of Hong Kong, China, has clarified that the leverage ratio of REITs cannot exceed 40%.

3 Liquidity: Public REITs divide complete real estate assets into relatively small units, which are listed and traded on the stock exchange and become open-end funds.

4 Diversification: The basic assets of REITs can be office buildings, retail properties, hotel apartments, factories and warehouses, hospitals, nursing homes, etc., or they can be infrastructure such as airports, ports, transmission towers, pipelines, and data centers, so it is a relatively

A relatively stable investment product.

5. Tax incentives: Some countries are tax-free on investment income from REITs, but this depends on our country’s policies.

Real estate investment trust funds (REITs) are an important means of real estate securitization.

From different perspectives, there are many different classification methods for REITs. Common classification methods are as follows: 1. According to the organizational form, REITs can be divided into two types: corporate type and contractual type.

Corporate REITs are based on the Company Law, and the funds raised through the issuance of REITs shares are used to invest in real estate assets. REITs have independent legal person qualifications, operate funds independently, and raise fund shares from unspecified investors.

Holders of shares in REITs ultimately become shareholders of the company.

Contractual REITs are based on the establishment of a trust deed and invest in real estate assets by raising funds through the issuance of beneficial certificates.

Contractual REITs themselves are not independent legal persons, but merely an asset. They are initiated and established by a fund management company, in which the fund manager acts as a trustee and is entrusted to invest in real estate.

The main difference between the two is that the legal basis for establishment and operation methods are different, so contractual REITs are more flexible than corporate REITs.

Corporate REITs dominate in the United States, while contractual REITs are more common in the United Kingdom, Japan, Singapore and other places.

2. According to different investment forms, REITs can usually be divided into three categories: equity, mortgage and hybrid.

Equity REITs invest in real estate and own ownership. Equity REITs are increasingly engaged in real estate business activities, such as leasing and customer service. However, the main difference between REITs and traditional real estate companies is that the main purpose of REITs is to serve as an investment portfolio.

Some operate the property rather than develop it for resale.

Mortgage REITs invest in real estate mortgage loans or real estate mortgage-backed securities, and their main source of income is the interest on real estate loans.

Hybrid REITs, as the name suggests, are between equity and mortgage REITs. They own some property rights and are also engaged in mortgage loan services.

The vast majority of REITs circulating in the market are equity REITs, while the other two types of REITs account for less than 10%. Equity REITs can provide better long-term investment returns and greater liquidity, and the market price is also

More stable 3. Depending on the mode of operation, there are two types of REITs: closed and open.

The issuance volume of closed REITs is limited at the beginning of issuance, and additional shares are not allowed to be issued arbitrarily; while open REITs can issue additional shares at any time in order to increase funds for investment in new real estate, and investors can also buy them at any time.

If you don’t want to hold it, you can redeem it at any time.

Closed REITs are generally listed and circulated on stock exchanges, and investors can transfer and sell them on the secondary market if they do not want to hold them.

4. According to different fund raising methods, REITs are divided into public offerings and private placements.

Private equity REITs raise funds from specific investors in a non-public manner, with specific targets, and are not allowed to be publicized, and are generally not listed for trading.

Publicly offered REITs raise trust funds from public investors through public offerings. The issuance requires strict approval by regulatory agencies and can be heavily publicized.