Consider the following statements regarding Real Estate Investment Trusts REITS 1 REITs are companie...........

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Consider the following statements regarding Real Estate Investment Trusts (REITS).

1. REITs are companies that buy and manage rent-producing assets such as offices and retail outlets.

2. They are regulated by SEBI.

3. They can invest only in completed projects and not under construction projects.

4. REITs will enable small investors to participate in real estate boom of country.

Which of the statements given are correct?

1 and 2 only

1, 2 and 4 only

1, 2 and 3 only

All of the above

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Explanation:

REITs are companies that buy and manage rent-producing assets such as offices and retail outlets. The REIT distributes the rental income earned, after expenses, as dividends. They are governed by the (Real estate investment trust) regulations, 2014 issued by SEBI. Hence first and third statements are correct. Recently, SEBI regulations allow REITs to invest up to 20% in under – construction assets.