REITs Flashcards
1
Q
what is a REIT?
A
a company which builds, owns and rents/sells investment property which people can invest in via the JSE
2
Q
staff in a REIT?
A
- ## must have a risk comm
3
Q
A
4
Q
A
5
Q
effects of REITs on foreign SH?
A
is a dividend for them essentially and they are subject to DWT
6
Q
staff in a REIT?
A
- ## must have a risk comm
6
Q
A
7
Q
staff in a REIT?
A
- must have a risk comm
- low number of high quality staff
8
Q
staff in a REIT?
A
- ## must have a risk comm
8
Q
staff in a REIT?
A
- must have a risk comm
- low number of high quality staff
8
Q
A
9
Q
risks associated with the income from a REIT?
A
generally very stable (rental income) but subject to economic and social issues in the economy
10
Q
listing rules for REITs?
A
- at least R300m in property
- debt must be <60% NAV
- earn 75% inc from rental and pay 75% inc as a distribution
11
Q
loan to value formula?
A
loan (debt - cash - derivatives) / value (assets - cash - rec - GW - derivatives)
12
Q
what does loan to value measure?
A
leverage
