{"id":29,"date":"2025-04-10T16:08:28","date_gmt":"2025-04-10T14:08:28","guid":{"rendered":"https:\/\/muddev.co.za\/sareit\/?page_id=29"},"modified":"2025-09-03T16:31:53","modified_gmt":"2025-09-03T14:31:53","slug":"what-is-a-reit","status":"publish","type":"page","link":"https:\/\/muddev.co.za\/sareit\/what-is-a-reit\/","title":{"rendered":"What is a Reit"},"content":{"rendered":"

[vc_row content_placement=”middle” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=”” el_id=”overview-of-reits” css=”.vc_custom_1748590010316{padding-top: 40px !important;}”][vc_column width=”1\/2″][vc_single_image image=”646″ img_size=”full” css=”” css_params=””][\/vc_column][vc_column width=”1\/2″][vc_custom_heading text=”Overview of REITs” font_container=”tag:h1|text_align:left|color:var(–porto-primary-color)” use_theme_fonts=”yes” css_params=””][vc_column_text css=”” css_params=””]A Real Estate Investment Trust (REIT) is a company that generates income through the ownership, management, and development of income-producing real estate. In South Africa, REITs must be listed on the Johannesburg Stock Exchange (JSE) or the Alternative Exchange (AltX) to qualify for special tax benefits. These exchanges serve as the only recognised platforms for REIT regulation in the country, providing investors with an efficient way to gain exposure to the real estate market.<\/p>\n

Investing in South African REITs (SA REITs) provides a straightforward method for accessing premium commercial properties without the complexity of property management. Investors can also trade shares on multiple platforms, including the secondary exchange A2X, which offers increased liquidity and lower trading costs.<\/p>\n

While REITs may have their shares traded on A2X, their official REIT status remains tied to their primary listing on the JSE or AltX. SA REITs follow globally recognised structures, ensuring a consistent and reliable way for investors to participate in the commercial real estate sector through the convenience of share trading.[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”how-to-invest-in-a-reit” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=”” css=”.vc_custom_1748590041877{padding-top: 40px !important;padding-bottom: 20px !important;}”][vc_column width=”1\/2″][vc_custom_heading text=”How to invest in a REIT?” font_container=”tag:h1|text_align:left|color:var(–porto-primary-color)” use_theme_fonts=”yes” css_params=””][vc_column_text css=”” css_params=””]We recommend visiting your bank and speaking with a financial advisor or contacting a South African fund manager or stockbroker who can assist you with options to invest your capital. Please refer to the JSE link at Find a Broker for a list of accredited stockbrokers.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1748590063329{padding-bottom: 10px !important;}” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″][vc_custom_heading text=”Investing directly in REIT shares” font_container=”tag:h2|font_size:35px|text_align:left|color:var(–porto-primary-color)|line_height:47px” use_theme_fonts=”yes” font_weight=”500″ css_params=””][\/vc_column][vc_column width=”1\/2″][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″]

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Open a stockbroking account with a stockbroker<\/h3><\/div>
By doing this, you can pick and buy shares in REITs yourself or instruct your stockbroker to do it for you.<\/div> <\/div><\/div>[vc_single_image image=”9187″ img_size=”full” css=”” css_params=”” label=””][\/vc_column][vc_column width=”1\/2″]
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Open an online trading securities account with a bank<\/h3><\/div>
Once you’ve opened your account and transferred funds, you can trade in REITs and any shares on the JSE online.<\/div> <\/div><\/div>[vc_single_image image=”9188″ img_size=”full” css=”” css_params=”” label=””][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1748590118825{padding-top: 20px !important;}” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”2\/3″][vc_custom_heading text=”Indirect – investing in a fund that owns REIT shares” font_container=”tag:h2|font_size:35px|text_align:left|color:var(–porto-primary-color)|line_height:47px” use_theme_fonts=”yes” font_weight=”500″ css_params=””][\/vc_column][vc_column width=”1\/3″][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1755767936009{padding-bottom: 15px !important;}” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22desktop%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″]
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Invest in a property unit trust fund<\/h3><\/div>
Many institutions and fund managers provide property unit trust funds that invest in multiple REITs simultaneously. You can make smaller investments in property unit trusts; however, the professional management of the investment entails an additional cost. To invest, reach out to the asset manager of a property unit trust, as several asset managers offer the option to manage your investment online.<\/div> <\/div><\/div>[\/vc_column][vc_column width=”1\/2″]
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Buy shares in a property index fund<\/h3><\/div>
You purchase it directly like a REIT share; however, it is a property unit trust that tracks the SA Property Index by investing in all REITs on the SA Property Index listed on the JSE proportionally to the size of each REIT. These funds typically have lower costs since the manager does not engage in stock picking but rather buys the index.<\/div> <\/div><\/div>[\/vc_column][\/vc_row][vc_row conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22desktop%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″][vc_single_image image=”9185″ img_size=”full” css=”” css_params=”” label=””][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”9186″ img_size=”full” css=”” css_params=”” label=””][\/vc_column][\/vc_row][vc_row conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22tablet_mobile%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″]
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Invest in a property unit trust fund<\/h3><\/div>
Many institutions and fund managers provide property unit trust funds that invest in multiple REITs simultaneously. You can make smaller investments in property unit trusts; however, the professional management of the investment entails an additional cost. To invest, reach out to the asset manager of a property unit trust, as several asset managers offer the option to manage your investment online.<\/div> <\/div><\/div>[vc_single_image image=”656″ img_size=”full” css=”” css_params=””][\/vc_column][vc_column width=”1\/2″]
\"\"<\/div><\/div>

Buy shares in a property index fund<\/h3><\/div>
You purchase it directly like a REIT share; however, it is a property unit trust that tracks the SA Property Index by investing in all REITs on the SA Property Index listed on the JSE proportionally to the size of each REIT. These funds typically have lower costs since the manager does not engage in stock picking but rather buys the index.<\/div> <\/div><\/div>[vc_single_image image=”657″ img_size=”full” css=”” css_params=””][\/vc_column][\/vc_row][vc_row el_id=”benefits-of-investing-in-reits” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=”” css=”.vc_custom_1748590182200{padding-top: 40px !important;}”][vc_column][vc_custom_heading text=”Benefits of Investing in REITs” font_container=”tag:h1|text_align:left|color:var(–porto-primary-color)” use_theme_fonts=”yes” css_params=””][vc_column_text css=”” css_params=””]Investing in SA REITs provides several unique benefits:[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_placement=”middle” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22desktop%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=”” css=”.vc_custom_1755768034397{padding-bottom: 10px !important;}”][vc_column width=”1\/2″]
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Inflation Protection & Investment Growth<\/h3><\/div>
SA REITs offer both capital appreciation and increasing income distributions, helping you stay ahead of inflation.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][vc_column width=”1\/2″]
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Access to Prime Commercial Real Estate<\/h3><\/div>
You can gain exposure to top-tier commercial properties in South Africa and internationally without a substantial capital outlay.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row][vc_row content_placement=”middle” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22tablet_mobile%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=”” css=”.vc_custom_1755768042127{padding-bottom: 10px !important;}”][vc_column width=”1\/2″]
\"\"<\/div><\/div>

Inflation Protection & Investment Growth<\/h3><\/div>
SA REITs offer both capital appreciation and increasing income distributions, helping you stay ahead of inflation.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][vc_column width=”1\/2″ css=”.vc_custom_1755768112980{margin-top: 20px !important;}” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=””]
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Access to Prime Commercial Real Estate<\/h3><\/div>
You can gain exposure to top-tier commercial properties in South Africa and internationally without a substantial capital outlay.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row][vc_row css=”.vc_custom_1755768150736{margin-top: 20px !important;padding-bottom: 10px !important;}” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22desktop%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″]
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Hybrid Investment Benefits<\/h3><\/div>
SA REITs blend the income stability of bonds with the growth potential of equities, providing both recurring cash flow and capital growth.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][vc_column width=”1\/2″]
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Low Entry Point & Liquidity<\/h3><\/div>
Begin investing with the cost of a single share and enjoy the flexibility of buying or selling quickly without the complexities of direct property ownership.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row][vc_row css=”.vc_custom_1755768158342{margin-top: 20px !important;padding-bottom: 10px !important;}” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22tablet_mobile%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″]
\"\"<\/div><\/div>

Hybrid Investment Benefits<\/h3><\/div>
SA REITs blend the income stability of bonds with the growth potential of equities, providing both recurring cash flow and capital growth.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][vc_column width=”1\/2″ css=”.vc_custom_1755768184219{margin-top: 20px !important;}” conditional_render=”%5B%7B%22value_role%22%3A%22administrator%22%7D%5D” css_params=””]
\"\"<\/div><\/div>

Low Entry Point & Liquidity<\/h3><\/div>
Begin investing with the cost of a single share and enjoy the flexibility of buying or selling quickly without the complexities of direct property ownership.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row][vc_row css=”.vc_custom_1755768193951{margin-top: 20px !important;padding-bottom: 10px !important;}” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22desktop%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″]
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Professionally Managed & Predictable Returns<\/h3><\/div>
Led by experienced teams, SA REITs deliver consistent returns through annual rental escalations and a diversified property portfolio.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row][vc_row css=”.vc_custom_1755768201562{margin-top: 20px !important;padding-bottom: 10px !important;}” conditional_render=”%5B%7B%22condition_a%22%3A%22device%22%2C%22comparative_operator%22%3A%22equal%22%2C%22value_device%22%3A%22tablet_mobile%22%2C%22value_role%22%3A%22administrator%22%7D%5D” css_params=””][vc_column width=”1\/2″]
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Professionally Managed & Predictable Returns<\/h3><\/div>
Led by experienced teams, SA REITs deliver consistent returns through annual rental escalations and a diversified property portfolio.<\/div> <\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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