Definitions for "Real estate investment trust"
A real estate investment trust is an investment scheme in which funds collected from investors are used to purchase real estate properties and returns in the form of rentals and profit from eventual sales of properties are paid to investors as dividends. The scheme was introduced in the U.S. in the 1960s as a means to allow small-lot investors to invest in properties. It once lost popularity in the U.S. amid the slumping real estate market, but regained momentum in the 1990s, drawing massive funds. A REIT is a kind of corporate-type investment trust fund which debuted in Japan in Dec. 1998. In the U.S., a trust which pays 95% of earnings to investors as dividends can enjoy an exemption from corporate tax. According to the National Association of Real Estate Investment Trusts in the U.S., 213 REITs were listed on the U.S. stock market as of May 1999, with market capitalization totaling 145 billion dollars. Japan's REIT market was launched on April 1, 2001, based on an amendment to the investment trust law in November 2000. REIT funds are expected to have more than 600 million yen in assets by the end of March 2002.
A publicly traded security representing holdings in real estate investments. A REIT is not an investment company, nor is it a DPP.
Unincorporated group of 100 or more investors who have limited liability.