Industry Analysis & Industry Trends
A real estate investment trust (REIT) is a company that owns and manages property on behalf of shareholders. REITs are exempt from corporate tax but must pay out 90% of their net property income to their shareholders. They are closed-ended and listed on a public exchange. REITs came into existence in the United Kingdom on 1 January 2007. As of October 2016, there are 44 REITs.
Owing to the result of the EU Referendum, the industry is expected to experience a turbulent year in 2016-17. Fears over the level of future demand for commercial real estate and rental yields and low demand in the wake of the vote led to a sharp decline in the value of many REITs. Consequently, IBISWorld estimates that industry revenue will decline by 6.8% over 2016-17 to approximately £6.1 billion... purchase to read more
Industry Report - Starting a New Business Chapter
A medium level of regulation and policy has resulted in moderate barriers to entering the Real Estate Investment Trust Activities industry. The prominence of the largest industry participants has raised the bar for prospective entrants. Without an attractive building mix, prospective entrants will struggle to drum up interest for their investment products. In addition, without the necessary capital or capacity to borrow, potential REITs are not able to acquire the necessary property. This means that only established land developers are likely to convert to REIT status.
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