**📅 Date:** ➤ ⌈ [[2025-06-18-Wed〚Stanford Saint Protocol ▪ (REITs) & Infrastructure Funds〛]]⌋
**👤 Who**：
**📌 Time**: Review of [[2025-05-30-Fri〚 Private Debt，Distressed Debt & Mezzanine▪ Vintage Year Of Found & WIne〛|2025-05-30-Fri]]
**💭 What:**
➤ 问题
**IRR (Internal Rate of Return)** 内部收益率
- 内化成每一年的收入 （项目估值的时候也讲了IRR）
- 从项目角度考虑
- gross 和income 同样重要
Must distribute >==90% of taxable income==
**👀 Snap:**
➤ **NOI (Net Operating Income)** 净营
⇩ 🅻🅸🅽🅺🆂 ⇩
**🏷️ Tags**: #💰/Economy
**🗂 Menu**:
⌈[[✢ M O C ➣ 06 ⌈J U N - 2 0 2 5⌉ ✢|2025 - J U N- MOC]]⌋
⌈[[✢ L O G ➢ 06 ⌈J U N - 2 0 2 5⌉ ✢|2025 - J U N - LOG]]⌋ #👾/Private
------➤ ⌈[[💰036-Real Estate Investment Trusts (REITs)]]⌋
------➤ ⌈[[💰 037- Property Valuation Approaches]]⌋
------➤ ⌈[[👾Observation - The Empty Built-to-Rent In Miami]]⌋
---
![[Screenshot 2025-06-17 at 19.51.23.png]]
---
# I. 🔷 Real Estate & Infrastructure Overview
## 🏠 Overview
Real estate includes two major sectors:
- **Residential**:
- Homes, apartments; makes up ~75% of global market.
- **Commercial**:
- Office buildings, shopping centers, warehouses.
---
## 🔹 1. Types of Real Estate Investments
- **Residential properties**:
- Homes, apartments, condos
- **Commercial properties**:
- Office buildings, retail spaces, malls
- **Industrial properties**:
- Warehouses, manufacturing plants
- **Land**:
- Agricultural or undeveloped
- **REITs**:
- Publicly traded entities that hold real estate assets
---
## 🏡 2. Real Estate Investment Structures
- **Direct Ownership**:
- Purchase and management of physical property
- **Indirect Ownership**:
- Real Estate Investment Trusts (REITs)
- Real estate mutual funds or partnerships
- **Leverage**:
- High levels of debt are often used to enhance returns
---
## 📈 3. Income and Returns
- **Rental Income**:
- Ongoing tenant payments
- **Appreciation**:
- Asset value growth over time
- **Tax Benefits**:
- Varies by region (e.g., depreciation, mortgage deductions)
- **Inflation Hedge**:
- Rent and property values tend to rise with inflation
---
## 📊 4. Valuation Methods
- **Sales Comparison**:
- Benchmarked against recent property sales
- **Income Approach**:
- Net Operating Income (NOI) / Cap Rate
- **Cost Approach**:
- Replacement cost minus depreciation
---
## ⚠️ 5. Risks
- **Illiquidity**:
- Hard to buy/sell quickly
- **High Transaction Costs**:
- Legal, tax, and brokerage fees
- **Tenant Risk**:
- Vacancies, rent defaults
- **Market Risk**:
- Value volatility
- **Management Burden**:
- Requires active oversight
---
## 🔄 6. Diversification and Correlation
- **Low Correlation**:
- With equities and bonds
- **Heterogeneity**:
- Every property is unique
---
## 🔢 7. Performance Measurement
- **IRR (Internal Rate of Return)** 内部收益率
- 内化成每一年的收入 （项目估值的时候也讲了IRR）
- 从项目角度考虑
- gross 和income 同样重要
- **NOI (Net Operating Income)** 净营业收入
- 不动产的总收入-运营成本后的净收入
- Growth in rental income
- 从income角度考
- **Cap Rate**
- **Cash-on-Cash Return**
---
# II. 🔷 Real Estate Investment Trusts (REITs)
### 1. What are REITs?
Publicly traded companies that own and manage real estate assets, and pay out most of their taxable income as dividends.
### 2. REIT Features:
- **Highly Liquid**:
- Traded on stock exchanges
- **Dividend Focused**:
- Must distribute >==90% of taxable income==
- **Diversified**:
- Exposure to multiple property sectors
- **Tax Efficient**:
- Pass-through income structure
### 3. Types of REITs:
- **Equity REITs**:
- Own and operate income-producing real estate
- **Mortgage REITs**:
- Provide real estate financing
- **Hybrid REITs**:
- Combine both equity and mortgage operations
### 4. Benefits to Investors:
- Access to real estate market
- Regular income via dividends
- Portfolio diversification
### 5. Risks:
- Sensitive to interest rate movements
- Sector-specific volatility (e.g., retail REITs)
- Regulatory and tax law changes