Post by Real Estate Investment Trusts in Nigeria
Defination of REITs: These are income-producing investment entities that convert illiquid real estate assets into liquid, dividend-yielding securities by collecting rent, lease payments, or mortgage interest from properties or real estate loans, then distributing these cash flows to investors on a regular basis.
In simple terms, a REIT is a platform that allows individuals to invest their money in real estate companies; it provides the opportunity to invest in a company that buys and manages properties, collects rent from businesses and individuals, and then distributes regular payments to investors. You get the benefits of being a landlord without actually being one.
Thus:There are three principal types of REITs:
- Equity REITs – purchase, hold and manage commercial and rental properties. Though they will finance these properties in many cases, their primary focus is on profits through acquisition and management.
- Mortgage REITs – do not purchase, own or manage properties. They invest in mortgages on real estate properties. Though these properties serve as collateral for the loans the mortgage REIT invests in, the REIT has no ownership position in the property itself.
- Hybrid REITs – combine the investment strategies of equity REITs and mortgage REITs by investing in both properties and mortgages.
How to invest in REITs in Nigeria?
Getting into Nigerian REITs is straightforward: find a licensed stockbroker, set up your investment account with them, and start buying REIT shares directly through the NGX platform—it’s like online shopping, but for real estate investments.
For more information on real estate investment you can contact Double Concept Construction and Properties on 0812 671 8002
