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Important Disclosures and Public Statements


The articles published here represent the personal views of the author(s), and not necessarily the views of any securities firm, insurance company, FINRA, SEC or organization with which he or she may be affiliated. All statements made in these articles are for general information only and are not intended to provide, nor should they be relied on as, legal or investment advice.  Readers must consult with their qualified investment, tax or legal advisors before relying upon any content contained herein. Statements made in these articles may be incorrect for your state or jurisdiction. Also keep in mind that at the time when you read such statements the underlying rules, regulations and/or decisions may no longer be controlling or persuasive as a matter of investment or insurance law or interpretation.

Consumer Finance Articles

REITS


Real estate investment trusts, known as REITs, are entities that invest in different kinds of real estate or real estate related assets, including shopping centers, office buildings, hotels, and mortgages secured by real estate.

There are basically three types of REITS:

  • Equity REITS, the most common type of REIT, invest in or own real estate and make money for investors from the rents they collect.

  • Mortgage REITS lend money to owners and developers or invest in financial instruments secured by mortgages on real estate.

  • Hybrid REITS are a combination of equity and mortgage REITS.
    The Internal Revenue Code lists the conditions a company must meet to qualify as a REIT. For example, the company must pay 90% of its taxable income to shareholders every year. It must also invest at least 75% of its total assets in real estate and generate 75% or more of its gross income from investments in or mortgages on real property.

Many REITs trade on national exchanges or in the over-the-counter market. REITs that are publicly traded must file reports with the SEC, such as quarterly and annual filings. 

For more information about REITS, you can visit the website of the National Association of Real Estate Investment Trusts, a trade organization for the REIT industry.

Note: This information is available and updated at the Securities and Exchange Commission website


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Tara Chabria posted on Saturday, May 21, 2011

Tags: Long Term Care, Investments, Retirement Planning, Senior Citizen

Posted in: Senior Citizens, Investments

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