The Reits investment proposition goes global

As the Reits approach to real estate investment is adopted across the Americas, Asia, Australia and Europe, it is useful to reflect on the US experience with Reits that began nearly 50 years ago

In 1960, the US Congress created Reits in order to make investment in large-scale, income-producing real estate accessible to investors from all walks of life. It decided that a good way for average investors to invest in large-scale commercial properties was the same way they invest otherwise - through the purchase of diversified equity, most often securitised. In the US, in order for a company to qualify as a Reit, it must comply with certain ground rules. These include: investing at least 75% of its total assets in real estate deriving at least 75% of gross income from rents from real e...