Long-Term Returns - Real Estate Investment Trusts (REITs) present investors with competitive returns, deriving their performance from the underlying real estate assets integrated within the REIT structure.
Enhanced Liquidity - REITs grant investors an elevated level of liquidity in comparison to directly owning real estate assets. This convenience empowers investors to effortlessly purchase and offload units within a trust that holds investments in real estate assets.
Steady Income Flow - Particularly in the case of income REITs, regulatory mandates dictate that they allocate a minimum of 80% of their post-tax net profits to their unit holders in the form of dividends. This arrangement establishes a dependable and consistent annual income source for these unit holders.
Portfolio Diversification - When harmonized with other asset categories, REITs serve as a distinctive diversification instrument when integrated into an investment portfolio.
Tax Advantages - REITs enjoy a range of tax benefits, augmenting their appeal as an asset class for investors. Notably, REITs are exempted from income tax, except for the withholding tax applied to interest income and dividends. Furthermore, REITs are absolved from obligations such as stamp duty, value added tax, and, in certain instances, capital gains tax.