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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?
Most Upvoted Answer
Consider the following statements regarding REIT (Real Estate Investme...
Explanation:

REITs are investment vehicles:
- REITs are indeed investment vehicles that pool money from multiple investors to invest in real estate assets.
- They operate similar to mutual funds but focus on real estate properties.

REITs can invest in various properties:
- REITs have the flexibility to invest in a variety of income-generating properties such as residential buildings, commercial offices, hotels, shopping malls, and warehouses.
- This diversification allows investors to benefit from different real estate sectors within a single investment.

Majority of the portfolio should be in rent-generating properties:
- It is a requirement for REITs to invest a significant portion of their portfolio in completed and income-producing properties.
- This ensures a steady stream of rental income, which is distributed to shareholders in the form of dividends.
- The focus on rent-generating properties helps to provide stability and consistent returns to investors.
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Community 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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Consider the following statements regarding REIT (Real Estate Investment Trust). REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets. REITs can invest in all kinds of income-generating properties like residences, offices, hotels, malls and warehouses. 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). REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets. REITs can invest in all kinds of income-generating properties like residences, offices, hotels, malls and warehouses. 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 UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding REIT (Real Estate Investment Trust). REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets. REITs can invest in all kinds of income-generating properties like residences, offices, hotels, malls and warehouses. 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 UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding REIT (Real Estate Investment Trust). REITs are investment vehicles that pool investor money like mutual funds and use it to buy real estate assets. REITs can invest in all kinds of income-generating properties like residences, offices, hotels, malls and warehouses. 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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