{"id":500,"date":"2022-11-25T09:33:56","date_gmt":"2022-11-25T09:33:56","guid":{"rendered":"https:\/\/serbianbuildfund.com\/?p=500"},"modified":"2022-11-25T09:35:08","modified_gmt":"2022-11-25T09:35:08","slug":"what-is-reit-what-is-the-serbian-build-fund","status":"publish","type":"post","link":"https:\/\/serbianbuildfund.com\/en\/blog\/what-is-reit-what-is-the-serbian-build-fund\/","title":{"rendered":"What Is REIT? What Is the Serbian Build Fund?"},"content":{"rendered":"

Real Estate Investment Trust, or <\/span>REIT<\/b> for short, is an investment trust (fund) for real estate management.<\/span><\/p>\n

Real estate investment trusts are companies that own or finance income-producing properties in the real estate sector.<\/span><\/p>\n

\"Real<\/p>\n

These real estate companies must meet a number of requirements to qualify as REITs. Most REITs trade on the world’s major stock exchanges and offer numerous benefits to investors.<\/span><\/p>\n

REITs provide an investment opportunity, like mutual funds, which allows everyone to benefit from the real estate market. It is an opportunity for investors to access dividend-based income but also to help local communities grow, prosper, and develop.<\/span><\/p>\n

REITs were created in the United States after President Dwight D. Eisenhower signed Act 86-779, sometimes called the “Cigar Excise Tax Extension,” in 1960. The law was passed to allow all investors to invest in various types of real estate that generate income through purchasing and selling liquid securities.\u00a0<\/span><\/p>\n

The first REIT was the <\/span>American Realty Trust<\/b> founded by Thomas J. Broyhill, a cousin of US Congressman Joel Broyhill from Virginia in 1961, who advocated the creation of this type of fund and a manner of investing in the real estate market.<\/span><\/p>\n

Today, in 2022, these types of real estate investment funds have been established in at least 38 countries worldwide. The comprehensive index for REITs and the global real estate market is the <\/span>FTSE EPRA\/Nareit Global Real Estate Index Series<\/b>, jointly created in October 2001 by index provider <\/span>FTSE Group<\/b>, <\/span>Nareit<\/b>, and <\/span>the European Public Real Estate Association (EPRA)<\/b>.<\/span><\/p>\n

As of January 29, 2021, the global index included 490 real estate companies listed on world stock exchanges in 39 countries around the world and together represent a capital market with a value of more than 1.7 trillion dollars.\u00a0<\/span><\/p>\n

In the United States, a REIT is a company that owns, and in most cases operates, income-producing real estate, while some REITs finance real estate and construction projects.<\/span><\/p>\n

\"REIT\"<\/p>\n

Properties in a REIT’s portfolio may include office buildings, residential complexes, healthcare facilities, hotels, retail centers, warehouses, etc.<\/span><\/p>\n

Generally, REITs specialize in a specific real estate sector. However, diversified and specialized REITs may have different types of assets in their portfolio, such as a REIT consisting of office and retail real estate.<\/span><\/p>\n

Many REITs are publicly traded on major security exchanges, and investors can buy and sell them like stocks over time to trade on the exchanges. These REITs typically trade on significantly high volumes and are considered highly liquid instruments.<\/span><\/p>\n

On the other hand, there are private REIT funds that are not publicly traded on the exchanges.<\/span><\/p>\n

\"New<\/p>\n

Types of REITs:<\/span><\/p>\n