Page 8 - IreitEbook
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(Known as senior or unsecured debt).
Some never even intend to outright
buy the land in question. Instead, they
rent it out from some other individual
or entity in much the same way they
THE DIFFERENT KINDS OF
turn around and rent out the building EQUITY REITS TO DELVE INTO
space on top of that land.
By definition and in practice, mortgage
This is known as a ground lease and is REITs are fairly standard. Other than
usually signed for several decades at a acknowledging them as being small-
time. Hardly a short-term agreement, cap or large-cap opportunities, or
this kind of transaction can cut by whether they fund commercial or
into a REIT’s revenue and even its residential property managers, it’s hard
stability, making the profit it offers its to break them down into too many
shareholders less appealing as well. subcategories.
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