General Structure of a REIT

Unit Holders (Investors)

Unit holders are individuals or institutions that invest money into the REIT by purchasing units (similar to shares). They are the owners of the REIT and expect returns in the form of dividends, which come from the income generated by the REIT's real estate assets. These investors benefit from the REIT's rental income and any capital appreciation of the real estate assets.

REIT (Real Estate Investment Trust)

The REIT itself is a legal entity that owns and operates income-generating real estate. It acts as a bridge between the unit holders and the real estate assets. The REIT collects rental income from the properties it owns and distributes the majority of this income to the unit holders as dividends.

Trustee

The trustee is an independent party that holds the legal title to the REIT’s assets on behalf of the unit holders. The trustee acts in the best interest of the unit holders and ensures that the REIT is managed according to the relevant laws and the REIT's trust deed. The trustee may also be responsible for overseeing the REIT’s compliance with regulatory requirements and ensuring that distributions are made to the unit holders. The trustee charges fees for their services, which are paid by the REIT.

REIT Manager

The REIT manager is appointed to manage the REIT’s day-to-day operations and overall strategy. They are responsible for making decisions regarding the acquisition, disposal, and management of the real estate assets within the REIT. In return for these services, the REIT manager receives a management fee from the REIT.

Property Manager

The property manager is appointed by the REIT manager to handle the operational aspects of managing the real estate assets. This includes leasing, property maintenance, tenant management, and ensuring that the properties remain in good condition. The property manager plays a crucial role in ensuring that the real estate assets generate consistent rental income. For their services, the property manager receives management fees from the REIT as well.