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Reits and Business Trusts: Similarities & Differences

In Reits on 10/12/2011 at 5:45 am

In Reits, property assets are held in trust by a trustee and a separate manager is appointed to manage the Reit. The rental income is used to pay out dividends to unit holders.

Like a Reit, the business trust is created by a trust deed. The trustee has legal ownership of the assets, and is also the manager.  The business will be in a sector that provides stable income like utilities.

Reit or Business Trust by MoneySense looks at the two different structures in more detail and also spells out the key differences.

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