What is a REIT?

A REIT is a Real Estate Investment Trust. It is a company that owns real estate, manages it, and distribute the profits (rents less expenses) to it's shareholders. It is a form of mutual real estate investment. We have produced a short video that explains what a REIT is in simple terms.

Why invest in a REIT?

Investing in a REIT makes it possible for small investors to have access to this investment class. For those owning real estate assets, it offers the possibility, through contribution of assets to the REIT to diversify their risk and mutualise their income stream.

This provides liquidity to the owner of assets, and access to the real estate investment market for smaller investors.

What are REIT shares? Are they different to normal shares?

Shares in a REIT are typically categorised "between a bond and a stock". They are usually priced between 150 and 250 basis points more than a government bond. They will also have potential for capital appreciation according to the adjustment in value of the underlying assets. This can however lead to volatility in the share price in the short term. The underlying quality of such an investment is the security of the dividend payment based on a recurring cash-flow generated by the long leases on the properties. You can trade REIT shares just like normal shares.

REIT vs direct investment:
Why would you invest into a REIT instead of buying actual properties?

A REIT offers flexibility, diversification, liquidity, and simplicity.

Flexibility:
Adjusting the amount you invest to your financial resources (rather than stretch your self to put all your savings into one asset).

Diversification:
In a REIT, you get a basket of properties with their diverse income streams rather than puting all your saving into one building with a concentration of tenant and asset risk in one property.

Liquidity:
Trading shares in a company is far easier, cheaper and faster than selling a physical real estate asset. Moreover, it enables you to realize part of your investment whilst maintaining exposure for the residual amount. In simple words: You can sell 1% of your shares or buy 1% more shares, whilst you can't easily sell 1% of a building.

Simplicity:
Owning a share is simple and gives you the right to a dividend. Owning a building however requires management, maintenance and marketing ... to then collect a rent.

Is Emirates REIT Shariah compliant?

Yes

How can I buy Emirates REIT shares?

Emirates REIT shares are traded on Nasdaq Dubai.
You can trade the shares via a Nasdaq Dubai authorised broker.
If you don't have an account with a Nasdaq Dubai authorised broker, your bank should be able to execute your trades.

What is a NIN?

A NIN is a National Investor Number. It is a unique number that enables you to trade any securities that are listed on Nasdaq Dubai or DFM in your own name instead of via your broker's account.
If you want to apply for a a NIN, you can visit Nasdaq Dubai website or contact your broker to apply.

Can I trade in AED?

Emirates REIT is listed in USD. Some brokers may be able to provide dirham trading account facilities but you would need to contact your broker for further information. Usually, your bank or broker will ask you to open a USD account with them.

Can I trade at any time?

The trading hours of the exchange are 10am to 2pm Dubai time (6am to 10am GMT) Sunday to Thursday.

Where can I get more information?

Nasdaq Dubai website has a “Trading REITs on Nasdaq Dubai“ section, with more relevant links and information.

If you would like to speak to someone at Emirates REIT please contact Ms. Magali Mouquet, Investor Relations via the contact form.

Is there a minimum or maximum amount of Emirates REIT shares I can buy?

There is no minimum or maximum number of shares permitted to be traded, however, as an Investor you should be aware of legal obligations that may apply once you hold over 5% of the Emirates REIT share capital.