ARTICLES

REITs were established as an asset class in the US in the 1960’s. Since then, REIT legislation has been recognized in 37 countries. The largest and most mature of the non-US REIT markets in terms of market cap are Singapore, continental Europe, the UK, Hong Kong, Japan and Australia.

For a company to achieve REIT status it must (amongst other criteria):

• invest at least 75% of its total assets in real estate
• derive at least 75% of its income through rentals, generated by the property assets it owns
• pay out at least 90% of its taxable income as dividends to shareholders

In this article, we will discuss the six most apparent reasons why doing the REIT thing (by including it in your portfolio) is doing the RIGHT thing.

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