FREQUENTLY ASKED QUESTIONS
A REIT allows any retail or institutional investor to invest in a large scale, professionally managed and liquid property portfolio. This will provide the investor with an income generating, safe, large and liquid real estate investment with a minimum investment of one share.
See our Frequently Asked Questions below for common quires about Virtu REIT and Real Estate Investment Trusts in general.
What is a REIT ?
A REIT is a Real Estate Investment Trust. It is a company that owns real estate, manages it, and distribute the profits (rents less expenses) to it’s shareholders. It is a form of mutual real estate investment. We have produced a short video that explains what a REIT is in simple terms.
Why Invest in a REIT ?
Investing in a REIT makes it possible for small investors to have access to this investment class. For those owning real estate assets, it offers the possibility, through contribution of assets to the REIT to diversify their risk and mutualise their income stream.
This provides liquidity to the owner of assets, and access to the real estate investment market for smaller investors.
What are RIET shares ? are they different than a typical share ?
Shares in a REIT are typically categorised “between a bond and a stock”. They are usually priced between 150 and 250 basis points more than a government bond. They will also have potential for capital appreciation according to the adjustment in value of the underlying assets. This can however lead to volatility in the share price in the short term. The underlying quality of such an investment is the security of the dividend payment based on a recurring cash-flow generated by the long leases on the properties. You can trade REIT shares just like normal shares.
REIT vs direct investment; Why would you invest Into a REIT instead of buying actual properties ?
A REIT offers flexibility, diversification, liquidity, and simplicity.
Flexibility:
Adjusting the amount you invest to your financial resources (rather than stretch your self to put all your savings into one asset).
Diversification:
In a REIT, you get a basket of properties with their diverse income streams rather than puting all your saving into one building with a concentration of tenant and asset risk in one property.
Liquidity:
Trading shares in a company is far easier, cheaper and faster than selling a physical real estate asset. Moreover, it enables you to realize part of your investment whilst maintaining exposure for the residual amount. In simple words: You can sell 1% of your shares or buy 1% more shares, whilst you can’t easily sell 1% of a building.
Simplicity:
Owning a share is simple and gives you the right to a dividend. Owning a building however requires management, maintenance and marketing … to then collect a rent.
Is Virtu REIT Shariah Compliant ?
Yes 100% Shariah Compliant.
How can i buy Virtu REIT Shares ?
Virtu REIT Shares will be traded publicly on the Georgian NASDAQ or
directly via our platform
For the first time, investors around the globe can buy into the Georgian real estate market through fully-compliant, fractional, shared ownership.