Finite-Life REIT - FREIT

AAA

DEFINITION of 'Finite-Life REIT - FREIT'

A real estate investment trust (REIT) that aims to sell its real estate holdings within a specified time frame so as to realize capital gains on its properties. Because of the definite date of their liquidation, finite-life REITs may be more liquid and trade closer to their net asset values than conventional REITs.

INVESTOPEDIA EXPLAINS 'Finite-Life REIT - FREIT'

Finite-life REITs were introduced in the U.S. in the 1980s as an extension of REITS. FREITs are criticized for their inability to exploit a proper buy and hold strategy in terms of their underlying assets, which can result in poor performance compared to their generic counterparts.

RELATED TERMS
  1. Real Estate Investment Group

    An organization that builds or buys a group of properties and ...
  2. Real Estate Operating Company - ...

    A company that invests in real estate and whose shares trade ...
  3. REIT ETF

    Exchange-traded funds that invest the majority of assets in equity ...
  4. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  5. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
  6. Business Broker

    A professional who specializes in the purchase and sale of companies. ...
Related Articles
  1. How To Analyze Real Estate Investment ...
    Home & Auto

    How To Analyze Real Estate Investment ...

  2. The REIT Way
    Options & Futures

    The REIT Way

  3. How To Assess A Real Estate Investment ...
    Home & Auto

    How To Assess A Real Estate Investment ...

  4. Simple Ways To Invest In Real Estate
    Home & Auto

    Simple Ways To Invest In Real Estate

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center