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Overview

REIT

REITs (Real Estate Investment Trusts) are products which gather capital from a large number of investors, own real-estate assets and return rents, proceeds from sales as dividends to investors.
REITs are able to traded on the TSE market (both market orders and limit orders are available) in the same way as stocks. REITs have enabled individuals to invest in real-estate with comparatively low amounts of capital.

The characteristics of REITs

Listed on Exchanges

REITs can be traded on the TSE market through securities companies in the same way as stocks. Internet-trading is also available.

Risk Distribution, Real-Estate Management by Professionals

Professional real estate manager owns multiple properties in order to diversify investor's risk.

Stable dividends, Comparatively High Yields

Dividends are produced from the rents of multiple properties, thus stable dividends. In addition, REITs can be exempt from corporate tax by meeting some criteria, therefore comparatively high yields will be expected.

Investment Possible with Relatively Low Amounts of Capital

It is possible to start investing in real-estate from approximately JPY 100,000, making investors more accessible to real-estate market.

Caution

  • There is the possibility of a fall in prices and other risks.

  • A price fluctuation risk exists and the price may fall lower than the initial purchase price.
  • REITs are influenced by economic factors, including the real estate rental market and interest rates. It is possible that REIT prices will fall or dividends will decrease.
  • REITs are affected by increases in costs due to earthquakes, fires, legislative/taxation changes, and other factors affecting individual properties. Losses due to bankruptcy of REIT is also possible.
  • REITs can be delisted when they hit the delisting criteria specified by the Exchange.
  • Fees are charged when conducting transactions. Capital gains tax may apply when making a sale, and other taxes may apply to the receipt of dividends.

Tokyo Stock Exchange REIT Index

Tokyo Stock Exchange REIT Index is a capitalization-weighted index based on all Real Estate Investment Trusts listed on the TSE market. This index shows the measures of current market capitalization assuming that market capitalization as of the base date (March 31, 2003) is 1000 points. (starting date of calculation : April 1st, 2003)