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.
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 charm of REITs lies in: providing opportunities for small and medium investors to invest in the lucrative real estate industry through the "collection" of funds; Professional managers use the raised funds for real estate investment portfolio, which disperses the real estate investment risk; The equity owned by investors can be transferred and has good liquidity.
International development
America 1
The US Congress promulgated the REITs Act in 1960. The purpose of this law is to provide a real estate investment structure similar to that provided by mutual funds for stock investment. REITs are a powerful income tool, because in order to avoid the responsibility of US federal income tax, REITs usually pay at least 90% of taxable income to shareholders in the form of dividends.
During the five-year period up to 20 19, the annualized rate of return of the Standard & Poor's 500 Index, a stock index of large American companies, was 12.5%, while the annualized rate of return of the FTSE NAREIT all-stock REITs Index was 9.0%.
During the period from 1972 to 20 19, the annualized total return of the S&P 500 index was 12. 1%, while the FTSE NAREIT index was 13.3%. There are more than 190 publicly-offered REITs listed on American exchanges.
2. Canada
REITs in Canada was established in 1993. They are required to be configured as trusts, and if their taxable net income is distributed to shareholders, there is no need to pay taxes. In the 2007 budget passed by the Conservative government, real estate investment trusts were excluded from the income tax bill. Many Canadian real estate investment trusts have limited liability.
On 20 10 12 16, the Ministry of finance revised the rules of Canadian tax definition of "qualified real estate investment trust fund". Therefore, from 201110, "qualified REITs" are exempt from the new entity-level SIFT tax paid by all publicly traded income trusts and partnerships.
3. Spain
Socimi (Sociedad Cotizada de capital mobiliario) was established in 2009, similar to REITs in Britain. After the fiscal incentive policy was introduced in 20 13 to help restore Spain's biggest housing crisis, it was boosted.
There are more than 70 REITS in Spain, but the liquidity is low and the holding period is long.
Refer to the above? Baidu Encyclopedia-Real Estate Trust and Investment Fund