Tax transparency – puts unitholders in the same position as if they had invested directly in real estate.
Dividend yield – mandatory distribution rules make REITs attractive to investors interested in yield.
Liquidity – unlike partnerships and some other traditional real estate investment vehicles, units of listed REITs are traded on stock exchanges.
Diversification and professional management – REITs allow investors to minimise risks by investing in a property portfolio managed by real estate professionals.
Low leverage – the gearing ratio in REITS generally does not exceed 50%.
Performance monitored – independent directors, analysts, auditors, and media monitor REITs. Managers will often have a stake in ownership.
High Level of regulation