What is a REIT?
A REIT (Real Estate Investment Trust) is a company that owns or finances income producing REIT combines the capital of many investors to provide financing for real estate investments which allows individual investors to invest in a professionally managed diversified portfolio of Real Estate and related real estate assets .It pays annual dividend of 90% of its annual Returns from all Investments.
What types of REITs are there?
REITs are often classified into one of two categories:
Equity REITs: This type of REIT own and operate income producing real estate such as shopping centers, health care facilities, apartments, warehouses ,office buildings, hotels, etc.
Mortgage REITs: These REITs mostly lend money directly to real estate owners and operators or extend credit indirectly through the acquisition of loans or mortgage backed securities.
Hybrid REITs: This is a type of REIT that operates both equity and mortgage REITs.
What type of properties do Union Homes REITs own and manage?
UH REITs own and manage a variety of Residential and Commercial properties located in highbrow areas of Lagos and Abuja.
Who invests in REITs?
Corporate bodies, Individual investors of all ages both invest in REITs. Other typical buyers of REITs include exchange traded funds, endowments, foundations, insurance companies and bank trust department.
What are the investment benefits of REITs?
REITs are total returns investments. They typically provide high dividends plus the potential for moderate, long term capital appreciation. Additionally REITs offer liquidity and portfolio diversification.
How much will be paid as dividend?
At least 90% of the net income accruing to the REIT will be paid to investors annually as dividend.
What factor contributes to REIT EARNINGS?
Growth in REIT earnings typically comes from several sources including higher revenues, lower costs and new business opportunities.
How does REIT measure earnings?
REIT uses net income as defined by IFRS as the primary operating performance measure. REIT also uses funds from operations (FFO) as a supplemental measure of its operating performance. FFO is defined as net income excluding gains or losses from sales of most property and depreciation of real estates.
How is Union Homes REIT different?
Union Homes REIT is a Hybrid REIT which invests in properties and mortgages allowing investors benefit from a two pronged assets. Union Homes REIT generally maintains a diversified portfolio which guarantees Investor’s returns. Union Homes REIT is transparently structured allowing investors gain full knowledge of its dealings.