{"id":4643,"date":"2024-05-02T20:55:59","date_gmt":"2024-05-02T15:55:59","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=4643"},"modified":"2024-05-02T20:58:30","modified_gmt":"2024-05-02T15:58:30","slug":"what-are-the-three-types-of-reits","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/what-are-the-three-types-of-reits\/","title":{"rendered":"What are the three types of REITs?"},"content":{"rendered":"\n<p>Real Estate Investment Trusts(REIT) have become a popular way to invest in the Real Estate sector, though Pakistan still has a lot of catching up to do. We already covered <a href=\"https:\/\/ksestocks.com\/blog\/4-reasons-why-you-should-invest-in-reits\/\" target=\"_blank\" rel=\"noopener\" title=\"4 reasons why you should invest in REITs\">4 reasons why you should invest in REITs<\/a>.<\/p>\n\n\n\n<p>However, when it comes to REITs, not all of them are the same. Knowing the difference is important.<\/p>\n\n\n\n<p>One can categorize them into three different categories. Let&#8217;s briefly go over each one. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rental REITs<\/h2>\n\n\n\n<p>The purpose of a rental REIT is to generate income by receiving rents from the underlying properties.<\/p>\n\n\n\n<p>The REIT management can then decide to pay out this rent to the shareholders.<\/p>\n\n\n\n<p>In Pakistan, REITs can avoid paying corporate tax if they payout at least <strong>90%<\/strong> of their earnings to shareholders. Because of this reason, <strong>dividends are almost guaranteed<\/strong>. <\/p>\n\n\n\n<p>In the PSX, <a href=\"https:\/\/ksestocks.com\/blog\/tag\/dcr\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Dolmen City REIT (DCR)<\/a> is a form of rental REIT. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Developmental REITs<\/h2>\n\n\n\n<p>Developmental REITs are focused on growth and are also sometimes called <strong>construction REITs<\/strong> or <strong>Growth REITs<\/strong>. <\/p>\n\n\n\n<p>They focus on buying undeveloped or underdeveloped properties and work on them to increase their value. Investors gain when the property is either <strong>sold out<\/strong> or turned into an <strong>income-generating asset<\/strong>. <\/p>\n\n\n\n<p>In the PSX, <a href=\"https:\/\/ksestocks.com\/blog\/tag\/grr\/\" target=\"_blank\" rel=\"noopener\" title=\"GRR\">Global Residency REIT (GRR)<\/a> is a for of developmental REIT.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Hybrid REITs<\/h2>\n\n\n\n<p>Hybrid REITs are a combination of both <strong>rental REITs<\/strong> and <strong>developmental REITs<\/strong>. <\/p>\n\n\n\n<p>They offer investors the opportunity to invest in both income-generating assets and value-appreciating assets through one company. <\/p>\n\n\n\n<p>In the PSX, <strong>TPL REIT Fund<\/strong> is a form of hybrid REIT.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One can categorize them into three different categories. Let&#8217;s briefly go over each one. <\/p>\n","protected":false},"author":3,"featured_media":4647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[233,234,235],"class_list":["post-4643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learning","tag-dcr","tag-grr","tag-reit"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/types-of-REITs-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/types-of-REITs-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/types-of-REITs-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/05\/types-of-REITs.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/4643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=4643"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/4643\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/4647"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=4643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=4643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=4643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}