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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles

An investor in a Real Estate Investment Trust (REIT) receives income mainly from which source?

A REIT investor receives income mainly from rentals and other cash flows generated by the income-producing real estate assets held by the trust, which are distributed to unitholders. Returns are not guaranteed by the sponsor.

  1. ARentals and income from the completed income-generating properties held by the trustCorrect
  2. BInterest paid by the stock exchange on units held
  3. CDividends declared on the investor's demat balance by the depository
  4. DGuaranteed fixed returns promised by the sponsor

Explanation

REITs own and operate income-producing real estate, and distribute most of the cash flows such as rentals to unitholders. Depositories do not pay dividends, and returns are not guaranteed by the sponsor.

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