Awareness of Reits 'remains low'
7.10.2008
Real estate investment trusts (Reits) remain unfamiliar to many investors, according to one expert.
Dave Butler, head of external affairs at impartial information service Reita, said the asset class is "not as well understood" by either private or institutional investors as the organisation "would like".
However, the expert suggested that since their launch in the UK, awareness has improved significantly.
"Our research shows that financial advisors are increasingly aware of them, although there is a background of commercial property generally falling out of favour," Mr Butler remarked.
Foreign investors have "bought heavily" into Reits, much more than investors from the UK, he added.
The latest figures from the IPD UK Monthly Property Index showed that all property total returns dipped by 1.1 per cent in August, compared with 1.3 per cent July.
During the 12 months to August, the total return was found to have fallen by 17.1 per cent, higher than the 16.1 per cent decrease recorded in the 12 months to July.
Dave Butler, head of external affairs at impartial information service Reita, said the asset class is "not as well understood" by either private or institutional investors as the organisation "would like".
However, the expert suggested that since their launch in the UK, awareness has improved significantly.
"Our research shows that financial advisors are increasingly aware of them, although there is a background of commercial property generally falling out of favour," Mr Butler remarked.
Foreign investors have "bought heavily" into Reits, much more than investors from the UK, he added.
The latest figures from the IPD UK Monthly Property Index showed that all property total returns dipped by 1.1 per cent in August, compared with 1.3 per cent July.
During the 12 months to August, the total return was found to have fallen by 17.1 per cent, higher than the 16.1 per cent decrease recorded in the 12 months to July.