A Captive Real Estate Investment Trust (Captive REIT) is a business and tax strategy employed by large retailers and banks with substantial real estate holdings or property loans. The REIT is sold by the company to investors to hold the real estate assets that were previously on the company's books. The company then pays rent to the REIT, which it deducts as a business expense.
Cash Available for Distribution (CAD) is a key metric for assessing the financial performance of Real Estate Investment Trusts (REITs). It is derived from Funds From Operations (FFO), after deducting costs of recurring capital expenditures.
Funds From Operations (FFO) is a key financial performance metric used by real estate investment trusts (REITs) to show the cash generated from their operations, which is then available for distributions to shareholders.
A REIT ETF (Real Estate Investment Trust Exchange-Traded Fund) is an ETF that focuses on investing in equity REITs or mortgage REITs. These funds are traded on stock exchanges like regular stocks and typically have lower fees and provide greater diversification compared to traditional real estate mutual funds.
An unincorporated association is a type of organization formed by a group of individuals who come together for a common purpose but have not gone through the legal process of incorporating. This means the association does not have a separate legal identity from its members.
