15. Islamic REITs is defined as: c REIT is a collective investment scheme in rea

Question

15. Islamic REITs is defined as: c REIT is a collective investment scheme in real estate, in which the tenants operate (b) "A REIT is physically able to generate stable, sustainable income through rental income and (C) The total return of REITs is subject to the performance of the property market. Hence, the unit (d) " REITs are also subject to the vagaries of market demand and supply. As such, market permissible activities according to the Shari'ah". capital appreciation, which can be used to continually pay regular dividend price of a REIT may go down if its underlying properties drop in value." fluctuations, confidence in the economy and changes in the interest rates may affect REITs price"

Explanation / Answer

Ans:

As per Securities Commission Malaysia (SC) 2005, “An Islamic REIT is a collective investment in real estate, in which the tenants operate permissible activities according to the Shariah”. The activities involve acquisition and leasing of real estate including tenancies with Shariah compliant activities and operations. Example of prohibited activities are conventional banking, liquor sale, gambling etc.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.