First, good liquidity.

REIT can combine the advantages of real estate investment with the liquidity of publicly traded securities. Compared with the long-term purchase and property management process, investors can quickly expand the width of their portfolio. In addition, REITs can have a competitive advantage in large-scale projects through capital market financing.

Second, tax incentives.

If REIT complies with relevant laws and regulations, it can enjoy relevant tax incentives and be exempted from enterprise income tax and capital gains tax, provided that most of the income must be paid to investors, who will pay taxes according to relevant personal tax rates to avoid double taxation.

Third, the historical dividend yield is high.

Since REITs must pay not less than 90% of the after-tax profits to the holders, the historical average dividend yield of REITs is about 7%.

What are the main types of reits funds?

First, according to the organizational form, reits can be divided into company type and contract type.

Corporate reits are based on the company law, and the funds raised by issuing reits are used to invest in real estate assets. Reits have independent legal personality, operate funds independently, raise fund shares for unknown investors, and reits stock holders will eventually become shareholders of the company.

According to the established trust deed, contractual real estate investment trusts invest in real estate assets by issuing beneficiary certificates for raising contractual real estate investment trusts. Contractual reits are not independent legal persons, but assets. They are initiated by fund management companies and entrust fund managers as trustees to invest in real estate.

The main difference between them lies in the different legal basis and operation mode, so contractual reits are more flexible than corporate reits.

Second, according to the different forms of investment, reits can usually be divided into equity type, mortgage type and mixed type.

Equity reits invest in real estate and have ownership. More and more equity reits are engaged in real estate business activities, such as leasing and customer service. Mortgage reits are investment real estate mortgage loans or securities backed by real estate mortgage loans, and the main source of income is real estate loan interest. Hybrid reits, as the name implies, are between equity reits and mortgage reits. They own some property rights and also engage in mortgage services.

Thirdly, reits can be divided into closed and open types according to different operation modes.

The circulation of closed reits is restricted at the beginning of issuance, and no additional issuance is allowed at will; Open reits can issue new shares at any time and increase capital investment in new real estate. Investors can also buy it at any time and redeem it when they don't want to hold it.

Fourthly, according to different financing methods, reits can be divided into public offering and private offering.

Private equity reits raise funds from specific investors in a private way, with specific targets, which are not allowed to be made public and generally not listed and traded. The issuance of public offering reits is to raise funds from public investors, which requires strict examination and approval by the regulatory authorities, but it can be widely publicized.