Real estate
investment trusts (Reits) have been described as an overall success in their first year, a report suggests.
Although
share prices have fallen by about 40 per cent, many
companies have converted to
Reits status over 2007, Reuters said.
More than 75 per cent of top-listed
property companies converted to Reits and some 17 UK Reits now exist with a value of about £25 billion.
Dave Butler, programme co-ordinator of campaign body Reita, told the
press agency: "The ability of Reits to provide long-term predictable
income is a major attraction for
investors and the benefit of
liquidity, that is inherent in the Reit structure, is becoming ever more obvious."
Reits are attractive to those investors requiring tax-efficient indirect
property investments in their
portfolios, Reuters suggested.
The Times noted that many in the City were "sceptical" about Reits when they were first launched but said that it was clear that they had been a success.