What does Reit mean?
Reits are Real Estate Investment Trusts.
Their portfolios are made up of several properties.
They own shopping malls,office buildings, industrial buildings, carparks, serviced apartments or hotels.
They collect rent from the tenants of these properties and pay most of it to shareholders.
When they buy a property, they will look at refurbishing it or changing its tenancy mix to boost yields.
Why is it important?
As Reits are traded like shares, they allow investors to "own" a piece of property without actually buying one.
Unlike buying an actual property, the capital outlay to buy a Reit is much lower and there is greater liquidity.
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