Abstract:
The institution of real estate investment trusts (REITs) was introduced in the United States of America in the early 60s following the establishment of REIT's legal framework and was applied in all developed markets.
In Greece, although the relevant legal framework for publicly traded REITs has been established since 1999, only the past two years investors have been interested in profiting from the institution and its industry.
The present article, at first makes an introduction, concerning the institution of REITs and its development in the united States of America and Europe.
Chapter I presents the legal framework concerning REITs’ establishment and operation, setting out in detail the terms and conditions of establishment, required share capital, regulatory obligations and mandatory listing.
Chapter II presents the range of investments as well as the particular quantitative and qualitative restrictions set to REITs' portfolio management.
Chapter III explains taxation and distribution of earnings relating
to REITS. Chapter IV refers in detail to the current legal framework concerning the valuation of REITs' investments. First of all it refers to the provisions of the Creek company Law in the cases of real estate investment valuation and securities valuation (Law 2190/1920, Law 2778/1999, Law 1969/1991) and subsequently refers to the relevant I AS/IFRS provisions.
Concluding it presents the advantages of REITs compared to other investment companies and the specific risk factors.
(EN)
