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REITs: Opportunity of the century.Real estate investment trusts based on the US model bring an entirely new asset class to Germany. More -
'The legislature should have more trust in the market'. Stephan Rind, CEO of Colonia real Estate AG, on his experience with REITs in the USA and lessons for Germany. More -
REITs in Germany.The introduction of REITs will benefit investors, issuers and Germany`s role as a financial center. However, it is important to take the right approach to including open-end real estate funds. More -
G-REITs and Taxiation.A major factor in the success or failure of G-REITs will be the treatment of capital gains on property. More -
G-REITs: So near but yet so far?After a long, drawn-out struggle, the draft bill for G-REIT legislation has finally been tabled. Although a bolder start would have been preferable, the old saying, 'A bird in the hand...' definitely applies. More -
Credibility, Credibility, Credibility. Oliver Puhl, Head of German Real Estate Investment Banking at Morgan Stanley, gives an investor`s view of the success factors for REITs. His prediction: the winning REITs will be those which present the public with a transparent an credible business model. More -
The secret of successful REITs - And how investors can spot them.What counts most is no longer location: it`s management. Dr. Wolfgang Schäfers and Steffen Ricken, capital market experts with Sal. Oppenheim jr. & Cie. KGaA, on success factors and the valuation of REITs. More -
A high profile for REITs on the capital market. Deutsche Börse offers REITs an important interface to the capital market. A special market segment for REITs creates numerous benefits for companies, investors and intermediaries. And Deutsche Börse offers numerous services to support listed REITs after they go public. More -
'Good stocks always find buyers' Investor relations expert Michaela Wanka on the dos and dont`s of capital market communications by REITs. More -
Mezzanine financing paves the way to IPO.For every REIT, the crowning achievment is to go public. But these companies have substantial financing requirements long before they can undertake an IPO. Capital markets now offer real estate companies a wide range of equity-like funding vehicles. More -
Deutsche EuroShop - Practically a REIT in its own right. Claus-Matthias Böge, CEO of Deutsche EuroShop AG, on his company`s pioneering role for a new class of assets. More -
Dividends for tenants. Why Germany`s residential housing market presents particularly strong potential for REITs. More |
Greeting Deutsche Börse has a clear goal: to serve REIT issuers and investors as an interface to the capital market. In the last few months we have worked with market users to develop attractive conditions for this new class of asset. And I can already reveal that, based on the expected German REIT legislation, we plan to establish a separate segment and a set of matching indices. A dedicated segment has obvious benefits: companies face clearly defined requirements, listing makes them visible to market users, and as part of a segment they gain better coverage from analysts. Investors win comparability, while banks and traders have new openings for business and specialization. In our view, REITs are an exciting new asset class with huge potential for all groups of investors — domestic and international, institutional and private. Their novelty is in their character, and this is their great strength. REITs are more liquid than real estate funds, can be traded like shares and promise high returns with low volatility like bonds. German and international studies show that the German REIT market is likely to be worth billions and will change the domestic property market for good. Experts puts the potential size of the German market at up to 120 billion euros by 2010. A glance abroad shows this to be by no means unrealistic, with some 330 billion US dollars invested in REITs around the world. REITs also score well in terms of returns: according to a recent Roland Berger study, they generate higher returns than other investment portfolios with the same level of risk. From 1972 to 2003, the average return on REITs was around 15 percent, while portfolios without REITs only achieved 12 percent. In my opinion, the new REIT asset class represents a vast opportunity for the German property market and for Germany as a financial center. At Deutsche Börse, we aim to play a major role in making sure this opportunity is exploited to the full. Rainer Riess, Managing Director, Stock Market Business Development, Deutsche Börse AG.
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