Over the five years to 2017, IBISWorld projects the REITs industry's revenue to increase. The outlook for the REITs industry over the next five years is expected to be positive. Two major trends expected to drive industry growth over the next five years are the overall aging of the population and the movement of companies toward a more organic, quality-based model. The advantages of a listed REIT share, namely the steady and generally market-beating returns, are particularly attractive to an aging population. Additionally, the industry's slowdown will likely lead to a restructuring that embraces high-value portfolios and development to encourage organic growth.
This industry comprises legal entities that are categorized as real estate investment trusts (REITs). REITs, like mutual funds, use the pooled capital of many investors to directly invest in income-yielding properties. To qualify as an REIT, a company or trust must annually distribute all of its taxable income to shareholders in the form of dividends. Income is largely generated from rent, interest and capital gains.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.