ADMS 1010 Lecture Notes - Real Estate Investment Trust

• School: York University
• Department: Administrative Studies
• Course: ADMS 1010
• Professor: All

Document Summary

Reit"s invest in real estate such as shopping malls, office buildings, apartments, warehouses and hotels. These properties are income-producing through rents and leases being paid monthly. Real estate: land plus anything permanently fixed to it, including buildings and other items attached to the structure. Residential, commercial, and industrial categories: examples include undeveloped land, houses, condominiums, townhouses, office buildings, retail store buildings and factories. An indirect way of participating in the real estate market, without maintaining properties yourself. A highly liquid method of investing in real estate. Reit"s receive special tax considerations (return on capital) and usually offer high yields. Many reit"s offer dividend reinvestment plans (drip"s): dividends paid are used to buy more reit shares automatically. Two main types of reit"s: equity reits: these invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenue comes principally from their properties" rents: mortgage reits: these deal in investment and ownership of property mortgages.