REIT (5)

What is the difference between REITs and property stock/company? (1)

REITs

REITs is a “fund” or “trust” that invests in real estate and property-related businesses, including property stocks.

An Securities Commission (SC) approved management company manages a REIT.



An appointed trustee safeguards the assets for unit holders.

A REIT has a well-defined investment policy and invests largely in a portfolio of income-generating real estates.


The trustee holds the real estates or properties in a REIT portfolio in trust for the REIT investors.

A REIT investor is subjected to management and trustee fees.


A REIT has to distribute 90% of its income as distributions.

REITs are exempt from income tax.


Unitholders pay tax at their respective level.