Real Estate Investment Trusts (REIT's)

REIT's are tax advantaged investment vehicles that invest in and derive their income from real estate properties and mortgages. REIT's profits are distributed pre-tax and then taxed in the investors’ hands. National Treasury is still considering a South African REIT structure, therefore JSE listed REIT's are dual listings.

Benefits

• Investors are able to gain exposure to immovable property with a smaller initial outlay
• The shares of REIT's are more liquid than the underlying properties which constitute to their portfolios
• REIT's give investors the opportunity to invest in a diverse portfolio of expertly managed immovable property
• REIT's provide regular streams of income
• Tax Efficiency - tax is payable in the hands of the end investor and not by the REIT
• REIT's are subject to the regulation of the exchange upon which they list as well as the REIT regulations

Who should use this product?

• Investors looking to gain exposure to the property market without large initial outlays
• Investors with a long term investment horizon who require income returns from their investment

How to use this product?

• REIT's trade like regular shares and can be purchased through a stockbroker.