Originally Posted by shri:
I've not studied REITs in any amount of detail - but if I own say x shares of Link REIT, can I go to a housing estate and say "I own those three square feet of the shopping center"?
I thought with many of these REITS are structured in a way that the physical property is held by another outfit and the REIT licenses the use of those properties from the owner and distributes the profit generated from the property (if I remember 90% payout ratio on profits).
So, you're not technically investing in the future value of the property, you're investing in the income generating capabilities of the property.
If the property is not income generating can you base the share value on the zero-income-producing asset value?
Am I missing something? or just being a bit too picky?