What does reits mean?

Real estate trust and investment funds (REITs) are an important means of real estate securitization. Investment in non-securities real estate with low liquidity.

A financial transaction process that is directly converted into securities assets in the capital market. Real estate securitization includes two basic forms: real estate project financing securitization and real estate mortgage securitization.

Different from the purely private nature of trust in China, REITs in the international sense are equivalent to funds in nature, with a few private placements, but most of them are public offerings. REITs can operate in a closed mode or be listed and traded, similar to open-end funds and closed-end funds in China.

The characteristics of real estate investment trust funds are:

1, income mainly comes from rental income and property appreciation;

2. Most of the proceeds will be used to distribute dividends;

3. Real estate investment trust funds have a high long-term rate of return.

Hybrid REITs, as the name implies, are between equity REITs and mortgage REITs. They own some property rights and also engage in mortgage services.

Most of the REITs circulating in the market are equity, and the other two types of REITs account for less than 10%. Equity REITs can provide better long-term investment returns and greater liquidity, and the market price is more stable.