Global real estate and investment trust (REIT) markets continue to expand and now surpass a total market capitalization of approximately US$1.7t. The number of countries now offering REITs as an investment vehicle has almost doubled in the last 10 years to 37.
It’s clear that as these regimes have evolved, the use of the REIT vehicle has become better understood and more widely accepted around the world as an investor-friendly, tax-efficient vehicle for real estate investment.
It’s evident that REITs are operating in a very dynamic environment that is evolving rapidly as disruptive technology, changing demographics, developing legislation and governance, and globalization continue to accelerate the pace of change. In this article, we address many of these changes, and have updated our in-depth analysis of these evolving REIT regimes.
We are excited to share the following insights with you.
Global REIT markets
The unique nature of legal and tax jurisdictions means there continues to be a wide discrepancy in what REITs look like in different regimes.
Internal vs. external management structures
US REITs favor an internal management structure, yet other countries take different approaches. Take a look at the pros and cons of each structure.
Shareholder activism in the REIT sector
Activists continue to build a case for change across a broad range of issues, including operational performance, strategic direction, asset concentration and allocation, conflicts of interest and corporate governance.
Technology and the REIT sector
Technology is leading to an accelerated pace of change across real estate markets and competition no longer acts as it did in the past.
Opportunities and challenges facing US REITs
EY takes a closer look at the ways tax reform, reliable access to common equity and other issues could impact the REIT industry.