CS Professional · Strategic Management and Corporate Finance · Real Estate Investment Trusts
Which feature distinguishes a REIT unit from a share of a real estate development company?
A REIT unit represents beneficial interest in the trust's income-generating real estate and entitles the holder to a high share of distributed cash flows. It is typically listed and tradable, and gives no guarantee of capital appreciation or sponsor board voting rights.
- AREIT units carry voting rights to elect directors of the sponsor
- BREIT units represent beneficial interest in the trust's income-generating assets, with a high payout of cash flowsCorrect
- CREIT units are always unlisted and cannot be traded
- DREIT units guarantee capital appreciation
Explanation
A unit gives a beneficial interest in the trust's rent-yielding assets and a mandated high distribution of cash flows. Units are generally listed and traded, and no appreciation is guaranteed.
Did you get it right without looking?
One question tells you little. A timed set on Real Estate Investment Trusts shows your real accuracy, how long you take and where you lose marks.
More Real Estate Investment Trusts questions
- Which classification of REITs is based on the nature of their underlying holdings, with equity REITs owning and operating income-producing p…
- Consider these statements about the structure and types of REITs. (I) A REIT registered with SEBI is set up as a trust. (II) REIT units, onc…
- Under the SEBI (Real Estate Investment Trusts) Regulations, 2014, what is the minimum share of the value of REIT assets that must be investe…
- Which of the following best describes a Real Estate Investment Trust (REIT) in the Indian context?
- A REIT is constituted as a trust. Which statement correctly describes the legal form needed for a REIT to be eligible for registration with …
- Under the SEBI REIT Regulations, which statement about the manager of a REIT is correct?