REITs on London Stock Exchange

A REIT(Real Estate Investment Trust) is a single company REIT or a group REIT that owns and manages property on behalf of shareholders. Since the REIT regime was introduced in January 2007, it has provided a well-established method to structure, collective investment in UK real estate and the ability for investors to efficiently access rental income streams from wide ranging, underlying real estate assets. Key features of REITs include an exemption of corporation tax on rental profits and gains from their UK property rental business. As a result, REITs must distribute 90% of their net property rental income to investors.

There are over 50 REITs with a market capitalisation of over $58bn listed on London Stock Exchange investing across industrial, office, residential, retail, speciality, hotel and lodging real estate.

For further details on the REIT structure and requirements can be found here.

 

REIT Sub Sector Distribution

Source: London Stock Exchange, FTSE ICB Sub Sector Data