Securities commission of Malaysia (SC) also defined REITs as an instrument that required the investor to invest no less than 50 percents of the total assets in the real estate whether through the direct ownership or single purpose company (Kannan, 2012). According to Kannan (2012), he explains that REITs is the instrument that issue through the IPO, be also buy from the remisier and shareholder in the secondary market and it was sell by the bank that act as the agents to the issuer. There are so many definitions regarding to REITs but the key word to all the opinion above is the …show more content…
Based on the Bursa Malaysia, REITs is providing the steady income and the yield of the distribution is attractive attracting the investor. The steady income was generating from consistent rental (Kannan, 2012). REITs is have the features that make it difference from the other investment vehicle which it receiving the special tax consideration based on term and condition, provided the higher yield of the profit distribution and it was very liquid instruments (Brounen & Koning, 2012). Moreover, REITs is known as the investment that less risk compare to the stock and offer higher return compare to the bond. The tax-exempt that implemented in REITs would help the investors to invest with large capital and could diversify the investment portfolio plus the public market that was liquidity. This type of investment is suitable for who was looking for take benefit of success in property sector without have to enter the volatile stock market(Norzuhaira, 2007).For the next sub topic, let learn more about the history of the