Real Estate Investment Trust ( REIT ) is new type of stock that traded in stock exchange and invests
directly in real estate related investment. It can be buy or sell in stock exchange like normal stock,
but the management of the trust invests all the capital into varies type of properties like retail properties, office or even residential units. The common properties that will invest by Real Estate Investment Trust is shopping malls, office buildings, hospital, warehouses, hotels and serviced apartments.
The investors of real estate investment trust ( REIT ) will enjoy high dividend ratio payout up to 90% of the company profit. Besides, most REITs will receive special tax consideration from the government. For examples, the dividend payout might need to pay less tax compared with normal dividend payout from other companies.
Moreover, real estate investment trusts ( REITs ) are always considered as highly liquid investment product compared with normal real estate investment as investors can sell their REIT units in share market to turn their investment into cash.However, it is more volatile than normal properties investment as well because it need to sustain price volatility in share market.