CETANA PROOF - Flipbook - Page 61
Diversi昀椀cation:
By investing in a REIT, investors can gain exposure to a diverse
portfolio of real estate assets, which helps to reduce risk. For
example, a REIT may invest in properties in different geographic
locations or across different asset classes, such as residential,
commercial, or industrial real estate.
Professional management:
A REIT’s investment assets are run by professional management,
which helps to ensure properties are well-maintained and
income is maximized. This can be especially bene昀椀cial for smaller
investors who may not have the time or resources to manage
properties themselves.
Liquidity:
Units in a REIT are generally more liquid than real estate
investments. This can make it easier for investors to exit their
positions if they need to raise capital quickly.
Tax advantages:
In Canada, REITs are generally not subject to corporate income
tax as long as it distributes most of its income to unitholders.
The distribution may be exempt from tax depending on the
unitholder. This can make REITs an attractive investment option
for investors.
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