DEFINITION of 'SEC Form S-11'

SEC Form S-11 is a filing with the Securities and Exchange Commission (SEC) that is used to register securities for real estate investment trusts (REITs). The business of REITs is to acquire, hold, and often manage real estate for the purpose of investment.

BREAKING DOWN 'SEC Form S-11'

Form S-11 is also known as the Registration Statement under the Securities Exchange Act of 1933 for certain real estate companies. The Securities Exchange Act of 1933, often referred to as the "truth in securities" law, requires that these registration forms, which provide essential facts, are filed to disclose important information for a company's stakeholders. This helps the SEC achieve the objectives of the Act: to deliver investors all significant information regarding the issuer and their securities to be offered, and to prohibit any fraud in the sale.

In general, a company will file their completed Form S-11 online via the SEC’s electronic filing system, called EDGAR for the Electronic Data Gathering, Analysis and Retrieval). EDGAR’s purpose is not only to support with the registration of new securities, but the system also makes available critical public information to all potential investors in an easy-to-access format.

Form S-11 includes prospectus details, pricing of the deal, how the REIT plans to use the proceeds, selected financial data like trends in revenue and profits, operating data, its financing, and other data as specified in Regulation S-K.

SEC Form S-11 and REITs (Real Estate Investment Trusts)

An REIT is a company that owns, operates or finances income-producing real estate. Properties that are eligible to be included in REITs are generally commercial spaces like malls. For a company to qualify as a REIT, it must meet certain regulatory guidelines. For example, the company must invest at least 75% of its total assets in real estate, cash or U.S. Treasuries, pay 90% percent of its taxable income in the form of shareholder dividends each year, and be a taxable corporation with 100 or more shareholders.

Like other securities, REITs generally trade on major exchanges. For investors without the funds or capacity to invest in real estate properties individually or build their own portfolio of real estate properties, REITs provide them with a liquid stake.

Most REITs specialize in a specific sector such as office REITs or healthcare REITs. Regardless of specialization, in most cases, REITs operate by leasing space and passing on collected rent payments to its investors in the form of dividends.

RELATED TERMS
  1. Finite-Life REIT - FREIT

    A Finite Life REIT (FREIT) has a limited window of time within ...
  2. Captive Real Estate Investment ...

    A real estate investment trust (REIT) that is controlled by a ...
  3. Income Trust

    An income trust is an investment trust that holds income-producing ...
  4. SEC MEF Filings

    SEC MEF filings are filings that concern registration of up to ...
  5. National Association Of Real Estate ...

    Nareit is a trade association that deals with the real estate ...
  6. SEC Form 15

    SEC Form 15 is a voluntary filing with the regulator by publicly ...
Related Articles
  1. Investing

    REITs vs. REIT ETFs: How They Compare

    Learn about the difference in investing in a REIT for a single real estate company versus investing in a REIT ETF that tracks a larger REIT index.
  2. Investing

    A Look at REITs vs. Real Estate Mutual Funds (ESRT, TRREX)

    REITs and real estate mutual funds have their differences, yet they both offer liquidity and easy access to diversified real estate assets.
  3. Financial Advisor

    REITs: Why They're So Hot Right Now

    They've been substantially outperforming both stocks and bonds for the past several months.
  4. Investing

    What To Expect From REITs In 2014

    While REITs will face a number of challenges in 2014, one particular issue will be the focus of investors: rising interest rates.
  5. Investing

    REITs Could be Affected by Higher Interest Rates

    Learn how REITs may be impacted by an increase in interest rates, and understand why certain types of REITs could benefit from higher rates.
  6. Investing

    The REIT Way

    Ever considered investing in real estate? Read about the REIT and see if it's the investment for you.
  7. Investing

    The Basics of Reinvesting REIT Dividends

    Learn the essentials of dividend reinvestment in real estate investment trusts and how a dividend reinvestment plan can magnify your long-term returns.
  8. Investing

    3 Cheap REIT ETFs That Stand Out (SCHH, FREL)

    Discover three low-cost exchange-traded funds that hold stocks of real estate investment trusts (REITs) and provide unique perspectives on the REIT industry.
  9. Investing

    Real Estate Investing: 3 Methods For Exposure Other Than Physical Assets (O, VNQ)

    Find out the ways investors can participate in the growth and income of the real estate market without having to own physical properties.
RELATED FAQS
  1. What is the difference between an Equity REIT and a Mortgage REIT?

    Find out more about real estate investment trusts and the main differences between equity and mortgage real estate investment ... Read Answer >>
  2. Is NAV the best way to assess the value of an REIT?

    Examine and understand the usefulness of net asset value as an accurate metric with which to assess the value of a REIT investment. Read Answer >>
  3. What financial metrics are best for evaluating companies in the real estate sector?

    Learn about some of the most important financial metrics and other analytic tools before investing in a real estate company ... Read Answer >>
  4. What are the main segments of the real estate sector?

    Understand what the three primary segments of the real estate sector are and the metrics used by investors and analysts to ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but ...
  2. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  3. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  4. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  5. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  6. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
Trading Center