• Unit investments in commercial real estate portfolio
• REITS (or real estate investment trusts) own, and in most cases, are operating income-producing property
• Passes most of its earnings and capital gains onto shareholders
• Closed-end funds (unlike ETFs)
• Listed and traded on stock exchanges

• Liquidity
• Management
• Pricing & Valuation
• Exit
• Geographical Limitation
• Personal Liability
• High Leverage
• Transaction Fees

The REITS provides the real estate owner with the means to:

• Partially exit - large real estate buyers are not easy to find
• Release locked-in capital
• Raise capital to repay debt
• Recycle capital to fuel growth in other projects
• Receive similar cash flows
• Retain a liquid unit investment in the real estate
• Achieve continuity but with better corporate governance

• Liquidity - you can buy and sell them like stocks
• Transparency - regulated and required audited financial statements
• Performance - they offer attractive risk adjusted returns
• Passive dividend income - they provide steady cash flow
• Diversification
• Smaller ticket size
• Low transaction costs

• Run by a fund manager (the operator)
• Has an "independent entity" providing custoday services
• Property management company services physical assets
• Independent valuator provides regular valuations
• Min 75% of asset value all times invested in at least 3 income-generating assets
• Max 30% of asset value invested in assets under development
• Obligation to distribute at least 80% of the annual net income