The objective of the real estate investment trusts performance is to evenly distribute the associated income (generally the distribution is quarterly). The real estate of this type of trusts consists of offices, warehouses and industrial premises or commercial premises. These premises are leased to companies, governments or traders.
The life of a trust is generally more than 50 years. In 2010 the average income was 5.63% and the revaluation of shares of 5.52% with an overall performance of 11.15%. A regional trust is a real estate investment company that focuses on a specific geographic area. Through this outreach strategy, this type of trusts takes full advantage of the dynamism of the region where it is invested. In view of the real estate market, there are some regional cities that are more stable and offer better growth prospects than the national market as a whole.
The managers of regional real estate investment trusts have real local market expertise and are more reactive than the major national groups. It also allows them to select their tenants more effectively and optimize the management of their assets. The performance of regional real estate investment trusts plays as much a role in the valuation of real estate.
Trust valuation
The objective of the trust valuation is to benefit partners ultimately upon the liquidation of the assets, the valuation of the capital they originally invested. The dates and conditions of purchase, period of liquidation of the company are crucial parameters.
The assets of such real estate investment trusts generally consists of apartments in the best areas of large cities. There is a limited distribution of income because if we can expect gains, the type of property involved is not productive of income. These premises are rented to individuals, international companies or embassies.
The lifetime value of a trust is generally set to around 15 years. The secondary market for shares is generally treated OTC, knowing that the buyer does not receive the original tax benefit and therefore can not, in the pending liquidation that benefit income and expect a gain at the outlet.
The level of profitability of mortgage bonds as a debt instrument depends on the level of risk of non-payment and the term to maturity. The risk of defaults on mortgage bonds, in turn, is directly related to its software. Providing real estate and state guarantees on mortgage bonds suggests that they are less risky (and more profitable) than corporate bonds, but more profitable than government.
For real estate investment trusts share holders, there is a deduction, which applies to the irrevocable option exercised when filing the income tax return for the year of purchase. Many realtors provide a way to sell your house fast for cash.
