Structure of how a REITs function:
REITs achieve separation of powers and duties by segregating the roles of ownership and management of the REIT assets between the Trustee and REIT Manager.
The trustee is responsible for the ownership and safe custody of the REIT’s assets. In exchange for providing the services, the trustee is paid a fee.
The REIT manager is just like the chief executive officer(CEO) of any listed company. The REIT manager is a separate company set up to run the REIT. It is usually a wholly-owned or partly-owned subsidiary of a REIT’s sponsor.
The REIT manager has the authority to appoint Property Managers for each property managed by the REIT, whose role is to manage the day to day operations and
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