What is Real Estate Investment Trust？

In general, real estate investment trust (REIT) are financial instruments that pay their investors cash distributions derived from the rental revenue generated by leasing real estate including buildings which have been acquired through investing the funds procured from investors.

Structure of REIT

Risk and Return

〈The risk and return relationship of each financial instruments〉

REITs are designed as a financial instrument bearing medium risk and medium return and falling between deposits or bonds (low risk, low return) and stocks (high risk, high return).

(note) Total return (the sum of income return and capital return) is indicated.

For Details

Tokyo Stock Exchange, Inc.　https://www.jpx.co.jp/english/

The Association for Real Estate Securitization　https://www.ares.or.jp/en/

The Investment Trusts Association, Japan　https://www.toushin.or.jp/english/