Glossary & framework library

REIT

Investment

Reference

Real Estate Investment Trust - a vehicle that owns income property and distributes most profits.

Related terms

  • Reversionary yield

    The yield an asset would produce once rents revert to current market levels.

  • Risk-adjusted return

    A return measure that accounts for the amount of risk taken to achieve it.

  • Rule of 72

    A shortcut for estimating how long an investment takes to double: divide 72 by the annual return rate — an 8% return roughly doubles capital in nine years.

  • Scenario analysis

    Modelling distinct combinations of assumptions (base, upside, downside) rather than a single line.

  • Sensitivity analysis

    Testing how an outcome changes as key assumptions vary, essential where data is uncertain.

  • Sponsor

    The party that originates, structures, and manages a real estate deal or fund, contributes some capital, and earns fees and a promote for delivering returns to…

  • Stabilised

    An asset that has reached its expected long-run occupancy and income level.

  • Total return

    The full return on an investment combining income (rent) and capital growth (value change) over the holding period.