Generally speaking, the structure of REITs is not complicated. Take the above Atrium REIT as an example, which is mainly divided into 4 parts:
- Unitholder – Holders of REITs unit, inject capital into REITs. On the contrary, REITs will return unitholders with dividends
- Trustee – The purpose of establishment is to protect the rights and interests of unithoder, REITs pay trustee fee all year round in exchange for their services
- Property – The property held by REITs.
- Manager – The managers of REITs pay manager’s fees all the year round in exchange for their services. The manager’s fee can be divided into the based fee, performance fee, acquisition fee, and dividend fee.
- based fee – it is charged according to the Net assets value, which is a relatively fixed expenditure
- performance fee – charged based on Net property income, the better REITs perform, the higher the performance fee
- acquisition fee – A one-time fee that must be paid when the property is purchased to repay the manager’s efforts
- disvestment fee – A one-time fee that must be paid when the property is sold on trust to repay the manager’s efforts
The structure of Atrium REIT is very simple. Some REITs hold subsidiary REITs, and even jointly hold properties with other companies.
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