Reit Research

FPI is a relatively new form of property investment, which enjoys immense popularity from 2001. However, the credit crunch affected the REIT market very badly in many countries. Asian REITs have lost ground in many cases over the last 24 months, however, Standard & Poor's believes that only a deep recession in property values in Asia and the whole Asian economy, will avoid REIT Asian gaining in popularity once more.

Alka Banerjee is vice president of Standard & Poor's, and he said that "The REIT market has seen a tremendous surge of 2001, but the credit crisis has badly hit. But there are good prospects with the intrinsic value, then how far can it fall? If the revenue income is stable, the NAV will be less important. "While the second quarter of 2008 saw REITs plunging in value, although slightly less than shares of ownership in general. REIT Asia in particular have lost about 10 per cent, while North American REIT lost 5.3%, European trusts have lost about 16.2 per cent and the benchmark, the S & P / Citigroup Global REIT Index, fell 8.6 per cent. In comparison with the United Kingdom, however, Asian REITs went very well - on the UK market contributed 21.1%.

Despite the negativity on the whole these figures, they suggest that the low point was reached, and that the values should increase from now on. The low value and high yields of trusts should draw investors back on the market as it corrects course.

In fact, the emerging real estate markets for REITs seek to increase investor interest in Asian real estate business because they allow even small investors to participate in profits. Projects that otherwise might not provisioned in the global credit crunch are looking for REITs.

Governments also seek to trusts to support the economy. India and Kenya, for example, have still not allowed to operate within their borders REIT. However, it is changing rapidly. A stock of new lending and borrowing program was recently implemented in India and the Securities and Exchange Board of India is the introduction of currency futures, together with the Indian government and the Central Bank. These measures, combined with the introduction of REITs, should give investors a wider range of instruments at their disposal, thus increasing their financial security.

Kenya also hopes that the REIT will become a vehicle of wealth for the long-time investors. They will be able to purchase premium properties in a much lower risk, and reap the benefits that emerging markets can hold. Commercial property can sometimes be difficult to finance, especially in a climate of extreme caution when it comes to loans, worldwide. However, the country has been asked to research objectives of investment real estate investment, the diversification policy and dividend policy.

It is hoped that the Asian REITs to stabilize the situation Capitaland, a Singapore company that has suffered stock losses recently. The company is on track in preparing its first Malaysian REIT mall, and five other listed REITs.

REITs continue to be recommended as an investment tool for novice investors, their knowledge and experience can help a little first timer to avoid heavy losses. New investors are invited to explore history of a fund's investment strategy and future.