An Analysis of the Real Estate Investment Trust in The United Kingdom

Seminararbeit , 2015 , 21 Seiten , Note: 1,0

VWL - Finanzwissenschaft

The aim of this paper is to analyse the Real Estate Investment Trust system in the United Kingdom. In order to do so the first topic is the background information followed by an analysis of the current situation. Furthermore there will be a comparision between the advantages and disadvantages of the REIT.

The REIT system, in combination with London's strong and traditional capital markets, has given the property investment sector the opportunity to grow. The law to set and preserve the identity of REITs in the United Kingdom was enacted in January 2007 and soon after that several property groups changed to REITs as well as some start-up REITs developed. Basically Real Estate Investment Trusts allow property companies to take part in the equity markets and thus provide financial means to end-investors without any tax leakage. Therefore UK-REITs offer further asset classes to investors and shareholders. REIT, which stands for Real Estate Investment Trust, deals with real estate as its asset. Therefore someone could assume that REIT was to be an equivalent alternative to direct property investment. Instead trade as equities follows other market mechanism than the cumbrous direct property market does. Trading on equities may change the character of REITs as investments, which comes apparent in the volatilities of direct real estates and REITs. The question arises whether REITs is to be seen as an investment in real estate or in equities or if it represents a hybrid form of both characteristics. Are REITs belonging to the real estate allocation or are they part of the equity allocation? A recent study reveals that 35% of US investors acknowledge REITs as an element of real estate business, while 37,5% favour them to be part of the equity section. Because the answer to this relevant question is very vague and undecided, it could explain why institutions still only take gentle steps towards the REIT market.

Content

Introduction

What Is Reit?

Background Information
The Pre Uk Reit Dialog

Current Situation
Taxes

Advantages And Disadvantages Of Reit

Future Developments

Real Life Examples And Case Studies

Bibliography
Internet Source:
List Of Figures:

• Note: 1,0
• Autor: Diplom Winnie Faust (Autor:in)
• Erscheinungsjahr: 2015
• Seiten: 21
• Katalognummer: V370417
• ISBN (eBook): 9783668499195
• ISBN (Buch): 9783668499201
• Sprache: Deutsch
• Schlagworte: REIT, Real Estate Investment Trust, United Kingdom, Analysis, Financial Issues, Companies, Market