This is a series of articles on the evaluation of  Real Estate Investment Trust (REIT). No matter of what type of REITS, one of the key criteria of a successful management is to evaluate the quality of management.

Understandly, the founders of many REITS are still in management positions and still own large stakes in the REITS ( when they first diposed off their properties, certain portion of the shareholding are still retain by them). This can be a good or bad situation.

So what should we do?

Check out/investigate the capital structure of the REIT to see whether these founders still have privileged voting rights in these REITS, see from their annual reports whether what plans that they said have been fully executed with efficiently and effectiveness, watch out for any restrictive covenants the REITS might have like for example sale restrictions due to agreements with individual shareholders.

Low quality management whether in REITS or in any type of company will not lead it anywhere!

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