Real Estate Investment Trusts (REITs) are a great help to banks as they can diversify their portfolio and sell real estate holdings in the stock market, a capital market expert said.
“The real estate investment trust is indeed an effective instrument connecting the stock market to the housing industry,” Hossein Doroudian told news outlets.
The trusts do a great service to the housing market in particular and urban projects in particular, Doroudian said.
“One way it helps is that it provides added diversification to financial instruments, potentially higher total returns, and/or lower overall risk… more so when the commodity market is on the downside.”