tailieunhanh - Introduction to Real Estate Investment Trusts

Companies are required to prepare their financial statements each year as per the provisions of the Companies Act and have them audited by a practicing Chartered Accountant or a firm of Chartered Accountants registered with the Institute of Chartered Accountants of India. The Companies Act permits companies to choose their financial year end. The audited financial statements must be approved by the shareholders in an annual meeting of the shareholders, which should be convened by the company normally within six months from the end of the financial year. All companies are required to file their audited financial statements with the. | Ill ill Iiiiii VINOD KOTHARI 1012 Krishna 224AJC Bose Road Calcutta 700 017. India hone 91-33-22813742 22811276 22817715 Fax 22811276 e-mail vinod@ . Introduction to Real Estate Investment Trusts Real estate securities Reasons for adding real estate in investment portfolio Real estate is globally the biggest asset Presumption is that real estate has low correlation with the rest of financial securities Investing in real estate has several problems Availability Ticket size Management problems Hence intermediated investment through real estate securities came up Real estate securities include . REITs . REOCs Mortgage-backed securities ETFs real estate mutual funds Synthetic investment by investing in real estate indices Vinod Kothari REITs 2009 2 Meaning of REITs A collective investment device of commercial real estate Equity-type funding REITs versus CMbS CMBS is securitised debt lending against real estate REITS are security equity funding of real estate . REITs Owns and in most cases operates income-producing property Equity REITs Office Apartment Retail shopping centers Hotels Warehouses storage Some REITs also finance real estate Mortgage REITs Essentially a tax-tool where equity funding of real estate is allowed on tax transparent basis Minimum 90 dividend REITs are typically listed and quoted Vinod Kothari REITs 2009