REAL ESTATE INVESTMENT TRUSTS – A MODERN FORM OF INVESTING INTO THE COMMERCIAL PROPETY OF UKRAINE
Abstract
Purpose – relevance of investing into the commercial propety through Real Estate Investment Trusts (REITs), as well as the identification of potential opportunities and threats of such deals. Methodology of research. Theoretical and methodological basis of the work to be defined by the foreign scientists from the US, Indonesia, Turkey and Finland. While studying there have been employed the following methods: the analysis and synthesis method – to identify opportunities, risks of investing into the trust; statistical and economic one – to determine the level of correlation between the financial instruments in the US market; generalization – to make the conclusions and describe the REITs classification. Findings. An analysis to determine the advantages and disadvantages of REITs investment trusts or, in English, real estate investment funds (REITs). The conditions of trusts’ establishment and operation to be stated with the regard to the US legislature and recommendations to be made on the implementation of the REITs system in Ukraine. Grounded methodological proposals of valuation of shares trusts using methods AFFO, FFO and generalized characteristics of successful mortgage trusts. Originality consists in identifying the mechanism for investing into the commercial property without possessing a share of this property. For the first time, REITs system is suggested for the Ukrainian market and special conditions imposed for approving investment trust organization form. It has also been revealed both the possibility of applying REITs in Ukraine and steps to be taken for improving Ukrainian investment rating, that are pretty different from those in the developed countries. Practical value. The results are applied nature. They are needed to: understanding the potential mortgage investment trusts and opportunities they are; market infrastructure development and diversification of the investment portfolio; determining the growth strategy of commercial real estate in Ukraine and attracting foreign investment through a transparent system of mortgage trusts.
References
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