It is a trust fund that collects funds by issuing shares or beneficiary certificates, is managed by a specialized fund custodian, and entrusts a specialized investment institution to carry out real estate investment and operation management, and distributes the comprehensive investment income to investors in proportion.
REITs portfolios typically include multiple types of real estate assets, which are diversified by region and type, reducing the impact of a single real estate project on the overall investment. For example, investing in different types of properties such as office buildings, hotels, and residences at the same time.
Publicly traded REITs allow investors to buy and sell at any time on the securities market, greatly improving the liquidity of assets compared to direct real estate investment.
REITs' main income comes from rent, real estate appreciation lebanon telegram data or mortgage interest, and the returns are relatively stable. For example, commercial real estate REITs can generate continuous cash flow for investors as long as tenants operate stably and pay rent on time.
Taking the Guotai Junan Jinan Energy Heating REIT as an example, its underlying assets are the ownership and corresponding operating rights of 232 sections of heating pipeline assets located in Lixia District and Licheng District held by Jinan Thermal Power Group. As an important part of urban public services, the heating industry has the characteristics of relatively rigid demand and relatively stable operation. It can generate sustained and stable cash flow and provide investors with stable return expectations.