Reits branded successful after year

Wed, 02 Jan 2008

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.
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