May 7 (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.'