Professional investors - pension funds, money managers, and wealthy families - have generally included real estate as a component within a balanced and diversified investment portfolio. As an asset class, real estate has historically delivered consistent cash flow in addition to the preservation of capital.

REITs were introduced in Canada in 1993 as publicly traded securities. After many years of developmental growth, the REIT market in Canada has evolved into a large, efficient public platform, through which investors of all sizes and types can access a "real estate component" to fit their own investment portfolio.

Getting the REIT Facts

• REITs appeal to investors looking for investment income that is steady and tax-advantaged
• REITs are subject to market risk in that their unit prices may rise or fall for reasons which are not directly correlated with management of the business
• REITs offer potential capital appreciation within a conservative capital structure
• REIT investments range from shopping centres and industrial buildings, to multi-family residences and commercial office buildings