Comparison of REITs and REF
| Category | REITs | REF |
|---|---|---|
| Management Participation | Possible to participate in management as a shareholder | Relies on the management company |
| Investment Period | Perpetual | Generally 3 to 7 years |
| Liquidity |
Immediate cash conversion* *Applicable to listed REITs, private REITs may have liquidity constraints |
Relies on the management company |
| Trading Method | Direct trading through the stock exchange for listed REITs | Trading through sales agents |
| Investment Method | Structure involves buying stocks of real estate companies to receive dividends | Structure involves investing in real estate assets to receive returns |
| Form | Corporation | Trust/Corporate type |
| Governing Law |
Real Estate Investment Company Act (Ministry of Land, Infrastructure and Transport approval) Note: Listed (public) REITs partly follow the Financial Investment Services and Capital Market Act |
Financial Investment Services and Capital Market Act (Financial Services Commission reporting) |