Difference Between REITs and Fractional Investment
REITs (Real Estate Investment Trusts) | Fractional Investments |
Publicly traded companies managing various real estate properties. | Investors collectively own shares of specific properties. |
Investors buy and sell shares on stock exchanges. | Ownership facilitated through online platforms with SM REITs fractional properties will also be tradable on the stock exchange. |
Diversified portfolios including commercial, residential, and industrial properties. | Direct ownership of individual properties. |
Dividends from rental income distributed to shareholders. | Rental income and appreciation distributed among investors. |
High liquidity with shares traded on exchanges. | Lower liquidity compared to REITs currently but will improve as SM REITs is launched. |