RPT-Fitch: Key Differences Between REITs and Industrials Warrant Attention

Tue May 7, 2013 9:04am EDT

May 7 (Reuters) - (The following statement was released by the rating agency)

U.S. real estate investment trusts (REITs) are corporate bond issuers that elect a certain tax status and have unique investment parameters, distribution requirements and liquidity needs; however, there are similarities between REITs and non-REIT corporations in areas such as corporate governance practices and growth strategies, according to Fitch Ratings in a new report.

Among 10 key credit factors noted in the report, the differences exceed similarities between REITs and non-REIT corporates, and these differences deserve consideration for fixed-income investors.

This report, 'Top 10 Comparisons of REITs and Corporate Issuers', is the third in a series of Fitch research reports aimed at helping newer investors understand some of the key differences among sectors and follows 'Top 10 Differences Between MLP and Corporate Issuers.'

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