What is a REIT and How do they work?

by | Nov 3, 2023

Let’s start with the basics:

REITs stands for ‘Real Estate Investment Trusts’.

These are essentially property companies that are listed on the stock market.

So how do they work?

Step 1: An individual decides to invest in a REIT company.

Step 2: The money is then collected into a large pool (like all trusts).

Step 3: The pooled money is then invested into the property that the company either owns, operates or finances.

Step 4: Over time the company starts to make revenue and profit.

Step 5: The profits are then accounted and collected.

Step 6: The profits are then distributed in parts to the initial investors who
helped finance the company through a REIT.

Sounds great in theory…

But in reality, there is always a catch…

And that catch is timing.

The Big five SA Reits have lost over R100bn in value since 2018.

The BIG five REITs are:

  1. Growthpoint
  2. Redefine
  3. Resilient
  4. Vukile and
  5. Hyprop.

Of course, this could be seen as an opportunity but there are several other factors we need to consider before deciding the best time to trade this type of asset.

Trade well, live free.

Timon Rossolimos
Founder, MATI Trader

 

CONNECT WITH US:

 

Facebook Group:
http://www.facebook.com/groups/matitrader

Website:
http://timonandmati.com

Discord:
https://discord.gg/c8f37kyv35

Want to see what the latest prices are on the highest definition charts?

Click the following links below….

JSE ALSI 40

 

Gold price 

 

Bitcoin price 

 

Ethereum price

 

Dollar Index

 

EUR/USD 

 

Order via our secured website:

 

 

Click here to order The Complete Charts Patterns and Candlesticks Guide by MATI Trader book

 

Or order via EFT payment”

 

Click here to order the book via EFT (all info in the invoice). 

 

Enjoy and remember…

 

 

You won’t need to buy or order another book on chart patterns and candlesticks ever again as I will be updating it very often and will let you know. 

Trade well, live free.

Timon Rossolimos

Founder, MATI Trader

 

Not sure the best way to get started with MATI Trader?

 

Follow these steps to start your successful trading journey.

 

Step #1 – Get The FREE MATI Trader Resources:

> MATI Trader System Programme Lesson 1

> Live Zoom events

> Articles

Step #2 – Own The Complete MATI Trader System:

> MATI Trader System Programme

Step #3 – Become A VIP:

> Premium MATI Trader Service

Step #4 – Connect With The Community: 

> Facebook

> YouTube

> Instagram