Effects of Introduction of Real Estate Investment Trusts on Stock Returns at the Nairobi Securities Exchange in Kenya

Abstract

A REIT (real estate investment trust) is a real estate firm which acquires constructs or manages different types of buildings that are put up in various locations. REITs are a form of financing instruments from companies that source funds to build or obtain property which are then sold or rented to create income for the investors who invested their money in the company. The income that is generated by the firm over the period is then shared among the shareholders at the end of the financial year. This study looks to investigate the various challenges and prospects that such an investment can attain within the real estate sector in the country. This is a new venture/investment that has been introduced in the Kenyan market, and this study will be able to identify the many challenges and the Effect of REITs and prospects that such an investment holds once it picks up in the country.