What are some of the risks involved in investing in REITs?
REITs are exposed to a variety of risks associated with the investments and management of, and returns from the REITs. An investor should carefully consider the following summary of risk factors and should consult a professional advisor as to the legal, business, financial and tax related aspects of investing in a REIT. This list is not exhaustive and further information may be obtained from the Initial Public Offering (“IPO”) Prospectus: General Risks • Economic, political and regulatory risks; • Capital market risk; • Fund management risk; and • Risk of non-compliance. Investment & Operational Risks • Operating history; • Investment policies may change; • Dependence on key personnel; • Dividend distribution not guaranteed; • Limitations on borrowings; • Risk associated with borrowings and interest rates; • Insurance risk; • Risk relating to investments in real estate; • No redemption of Units; • Future dilution of the NAV of the Units; • Effects of possible sale of a substantial numb
