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Consider the following statements regarding REIT (Real Estate Investment Trust).
1. REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets.
2. REITs can invest in all kinds of income-generating properties like — residences, offices, hotels, malls and warehouses.
3. Majority of the portfolio of a REIT should be invested in completed and rent-generating properties.
Which of the above statements is/are correct?
  • a)
    1, 2
  • b)
    1, 3
  • c)
    2, 3
  • d)
    1, 2, 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements regarding REIT (Real Estate Investme...
REITs are investment vehicles that pool investor money like mutual funds and use it to buy a portfolio of real estate assets. They manage these assets to generate a regular income and capital appreciation. In order to ensure that the REIT is able to generate income, 80 per cent of the portfolio of a REIT should be invested in completed and rent-generating properties.
While REITs can invest in all kinds of income-generating properties — residences, offices, hotels, malls, warehouses, in India the listed REITs are focussed mainly on office space.
As per SEBI’s guidelines, REITs need to mandatorily distribute 90 per cent of their income to unit-holders. The distribution could be in the form of dividend or interest income or both.
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Most Upvoted Answer
Consider the following statements regarding REIT (Real Estate Investme...
Office buildings, shopping malls, apartments, hotels, and industrial properties.3. REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends.4. REITs provide a way for individual investors to invest in real estate without having to directly own and manage properties.5. REITs offer liquidity to investors as their shares can be bought and sold on stock exchanges.

All of the statements are true regarding REITs.
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Consider the following statements regarding REIT (Real Estate Investment Trust).1. REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets.2. REITs can invest in all kinds of income-generating properties like — residences, offices, hotels, malls and warehouses.3. Majority of the portfolio of a REIT should be invested in completed and rent-generating properties.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding REIT (Real Estate Investment Trust).1. REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets.2. REITs can invest in all kinds of income-generating properties like — residences, offices, hotels, malls and warehouses.3. Majority of the portfolio of a REIT should be invested in completed and rent-generating properties.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements regarding REIT (Real Estate Investment Trust).1. REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets.2. REITs can invest in all kinds of income-generating properties like — residences, offices, hotels, malls and warehouses.3. Majority of the portfolio of a REIT should be invested in completed and rent-generating properties.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding REIT (Real Estate Investment Trust).1. REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets.2. REITs can invest in all kinds of income-generating properties like — residences, offices, hotels, malls and warehouses.3. Majority of the portfolio of a REIT should be invested in completed and rent-generating properties.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?.
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