The rise in popularity of Real Estate Investment Trusts (REITs) has been remarkable since their creation in 1993. Along with being one of the most successful investment sectors in the public markets with listings of 48 REITs, private REITs have seen success as an alternative investment. Each of these is attractive to investors looking for stable investments with an orientation toward income distribution.
There has been a significant increase in new REITs since 2008 when income tax rules changed to lower barriers to entry and encourage new entrants to launch. The majority of REITs are listed on the Toronto Stock Exchange.
This report draws together insights into the rise of REITs as a vehicle for investment in property assets with a wider purpose, in particular, the emergence of REITs focusing on social property.
We look at what is working currently, how the use of REITs as a force for good might develop in the future and lessons that can be learned from other countries.