Some A-REITs are stapled securities, simultaneously giving investors exposure to a real estate portfolio and a funds management company or property development business. A share in an A-REIT with this structure usually consists of one unit in the property trust and one share in the company, ‘stapled’ together, so they cannot be traded separately. The trust holds the portfolio of assets, while the related company carries out the fund’s management functions and manages any development opportunities.
Investing in stapled securities can have tax implications, with each security treated separately for tax purposes. As always, it’s important to seek professional advice on your individual situation before you invest.
