Shifting foundations: A downturn in the property market is expected to lead to ongoing contraction

Real estate investment trusts are closed-ended investment firms that are listed on stock exchanges. This structure came into existence in the United Kingdom on 1 January 2007 through the Finance Act 2006. REIT's manage and develop property, on behalf of shareholders. These firms add value by allowing liquid, quick and readily available, investment in property, as well as providing financial returns. REITs are seen as attractive investment vehicles as they are tax efficient, being exempt from corporation tax. However, they must pay out 90% of their net property income to their shareholders.The past five years have been characterised by restructuring in response to the 2012 Finance more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry exposure to commercial property and retail trends has led to revenue contraction
  • A number of consolidation attempts have fallen through in recent years, as downstream markets have changed
  • Firms that are able to switch to fixed-rate bonds ahead of interest rises will benefit from cheaper capital
  • Industry Report - Industry Products Chapter

    Diversified portfoliosBased on market capitalisation, the most popular REITs operate in the diversified portfolio segment. These REITs own and manage properties across different sectors, such as offices, residential and retail properties. The diversified portfolio segment is expected to account for approximately 39.6% of industry revenue in the current year. Diversified portfolios are expected to remain popular over 2018-19, with demand remaining relatively constant.Retail portfoliosRetail REITs are the second most popular segment. This segment includes REITs with portfolios of retail properties such as superstores, shopping centres and department stores. The...purchase to read more.

    Additional Insights for the Real Estate Investment Trust Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Investment Trust Activities Industry are

  • Having an extensive distribution/collection network
  • Recommendation/accreditation from authoritative source
  • Having a high prior success rate (including completed prior contacts)
  • IBISWorld analysts also discuss how external factors such as Household savings ratio and year bond rate in the Real Estate Investment Trust Activities industry impact industry performance..

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    What's in this report

    What is the Real Estate Investment Trust Activities Industry?

    Real estate investment trusts are listed companies with closed-ended share capital that hold, manage and maintain property portfolios for investment purposes (i.e. for renting to tenants).

    Industry Products
  • Diversified portfolios
  • Self-storage portfolios
  • Retail portfolios
  • Office portfolios
  • Industrial portfolios
  • Health-care portfolios
  • Other portfolios
  • Residential portfolios
  • Industry Activities
  • Selecting and managing a portfolio of real estate securities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Household savings ratio
  • year bond rate
  • Business confidence index
  • Retail sales index
  • Consumer confidence index

  • Current Performance
  • Relaxed regulation
  • Consolidation stymied
  • Changing market
  • EU referendum
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory shifts
  • Getting real
  • Rising rates
  • Changing demand
  • Table: Real Estate Investment Trust Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Investment Trust Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pension Funding
  • Investment Banking & Securities Brokerage
  • Fund Management Activities

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Diversified portfolios
  • Retail portfolios
  • Office portfolios
  • Industrial portfolios
  • Residential portfolios
  • Other portfolios
  • Self-storage portfolios
  • Health-care portfolios
  • Chart: Real Estate Investment Trust Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Institutions
  • Non-real estate collective investment funds
  • Real estate collective investment funds
  • Individuals
  • Other
  • Chart: Major Market Segmentation for the Real Estate Investment Trust Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Investment Trust Activities

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Investment Trust Activities Industry

  • Industry Globalization
    Land Securities Group plc, The British Land Company plc, Intu Properties plc, Hammerson plc,
  • Table: Land Securities Group plc - financial performance
  • Table: The British Land Company plc - financial performance
  • Table: Intu Properties plc - financial performance
  • Table: Hammerson plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Investment Trust Activities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Investment Trust Activities Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The financial processes of grouping a number of assets into a pool and issuing a new set of securities backed by those assets.
  • Closed-Ended
  • A corporate structure where all shares of the legal entity are issued at its outset. Many standard publicly listed firms fall under this category.
  • Pooling
  • The dilution of risk of reduced income flows by redistribution across many assets.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Real Estate Investment Trust Activities market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Investment Trust Activities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Investment Trust Activities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Investment Trust Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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