REITs (Real Estate Investment Trusts)
REITs are companies that own properties which generate rental income. REITs were first established by the US Congress in the 1960s, to give private investors the opportunity to invest in larger properties such as shopping centres or office buildings. In most countries, REITs have to generate at least 75 per cent of their income from managing and leasing properties. They are also required to regularly distribute the majority of their profits to shareholders, in the form of dividends. In return, they are exempt from tax at company level.
REITs in Europe
SEB Europe REIT Fund
The SEB Europe REIT Fund employs a strictly-defined investment process geared towards generating ordinary income. The Fund generally invests in European REITs (or real estate companies with REIT-like characteristics) that have a high equity ratio and a high interest service cover ratio, as well as generating strong and predictable dividend distributions.
SEB Europe REIT Fund
Complementing the SEB Europe REIT Fund, which invests in European REIT markets, the SEB Asia Pacific REIT Fund was launched in April 2012: this fund invests exclusively in REITs from the Asia/Pacific region.
REITs in the Asia-Pacific region
The Asia-Pacific REIT market is currently the second-largest in the world. The Asian commercial real estate markets already outstrip those in Western Europe and North America.
SEB Asia Pacific REIT Fund – focused on high current income in the Asian growth market
The SEB Asia Pacific REIT Fund allows you to invest exclusively in REITs (real estate investment trusts) in the Asia-Pacific region. Asia-Pacific REITs are selected for the portfolio on the basis of a standardised investment process. The aim is to build up a diversified portfolio with the help of a conservative investment strategy that focuses on predictable, rising current income over time.
SEB Asia Pacific REIT Fund C
Both funds distribute quarterly dividends. Thanks to the mandatory exchange listing of these REITs, you benefit from daily liquidity; moreover, you receive exposure to Asian and European real estate even with small investment amounts. The portfolios are structured so as to ensure adequate diversification in terms of real estate types of use and countries invested in.
