Met up with friend today for dinner. I try to explain difference between Reits and Business Trusts, but somehow it is not very convincing. Here is link to explain in detail.
Most common reason to invest in Reits or Trusts is for the dividend return. Extracted herewith – “The attractiveness of Reits or Trusts
lie in their ability to pay a regular and stable dividend. This is a big plus
in a portfolio. Re-search into long-term returns shows that reinvested
dividends comprise the bulk of returns, compared to capital appreciation.”
on unitholders’ behalf. Separation of
roles between trustee and the manager.
trustee has legal ownership of trust assets and mange assets for unitholders’
cent. This can be raised to 60 per cent if the Reit obtains, discloses and maintains a credit rating from
of funds to grow its business.)
income to enjoy tax transparency under Income Tax Act.
distribute, but the trust may pledge to distribute a certain percentage of
income as dividends. E.g. Croesus Retail Trust pledge 100% distribution for
first 2 years after IPO last year.