Demand for the Real Estate Investment Trusts (REITs) industry is closely tied to the general health of the overall real estate sector and the economy. When the housing bubble burst and credit markets tightened, industry revenue dropped before quickly recovering over the early recovery. In subsequent years, the industry has grown strongly. The industry is currently benefiting from higher rents and low vacancy rates in several property markets. Well-capitalized REITs are boosting downstream construction and real estate industries by ramping up property purchases and funding construction to take advantage of low interest rates and mounting rental demand.
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 distribute all of their taxable income to shareholders annually 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.