WorksheetsBWM 4063 Chapter 7
Total questions: 20
Worksheet time: 9mins
1) What is Islamic Real Estate Investment Trust (REIT)?
Islamic REIT is a fund or a trust that invests in a portfolio of income-generating commercial real estate - shopping complexes, hospitals, plantations, industrial properties, and office blocks
Islamic REIT is a collective investment scheme in real estate, which the tenant(s) operates permissible activities according to Shariah
Islamic REIT permitted to acquire vacant land, an extension of loans and financing facilities or any other credit facility to any person
The following list outlines the prohibited criteria of Islamic REIT:
Conventional Banking
Gambling
Conventional Insurance
All of the above
What is the permissible % benchmark that was determined by the Syariah Advisory Council (SAC) of the Securities Commission for the criteria on rental from non-permissible activities?
5%
15%
20%
10%
Can an Islamic REIT own real estate in which all the tenants operate non-permissible activities?
Yes
No
Is an Islamic REIT required to use insurance scheme that comply with Shariah principles?
Yes
No
What is the main comparison in investing in Islamic REIT compared to Conventional REIT?
Islamic REIT must appoint a Syariah Committee/Advisor to ensure compliance with Syariah requirements
No restrictions in Financing
All activities carried out by tenants are allowed
Distribution of income should only be made from realized gains or realized income
How many REITs are there in Malaysia?
14
10
18
4
Following are the Islamic REITs that you can invest in:
KLCC REIT, Al-Aqar, Al-Salam & Pavilion
Al-Salam, Axis REIT, KLCC REIT & Al-Aqar
Al-Aqar, Al-Salam, IGB REIT & Pavilion
KLCC REIT, Sunway REIT, IGB REIT & Pavilion
Which are the following properties that are not part of KLCC Group structure?
PETRONAS Twin Towers
Menara Dayabumi
Pavilion Mall
Suria KLCC
What is the market capitalization composition of KLCC Group against the overall Malaysian REIT industry?
30%
32%
10%
20%
What is meant by funds from operation?
operating profit
net profit
gross profit
all of the above
all of the above A hybrid REIT is comprised of what primary classifications of
UPREITs and Mortgage
Mortgage, Equity, and Retail
Mortgage and Equity
Healthcare, Retail, and Office
Which of the following is not a type of REIT?
A) B) C) D)
Mortgage trust
Equity trust
Hybrid trust
Partnership trust
FFO for a REIT is roughly equal to
NOI less interest deductions
Earnings before tax plus depreciation deductions
NOI plus interest deductions
Earnings per share plus capital gains
REITs are companies or trusts that invests in a portfolio of real estate
True
False
Investing in REITs does not provide liquidity to individuals compared to traditional real estate investment
True
False
To qualify as a REIT, companies must distribute at least 90 per cent of its taxable income as dividends.
True
False
A company must have the bulk of its assets and income connected to real estate investment to be constituted as REIT.
True
False
An equity REIT cannot grow its business by acquiring properties, developing new properties, renovating existing properties, and raising rents on existing properties
True
False
Which of the following REIT types is organized to acquire the specific property or properties described in its prospectus?
A property trust
A mixed trust
purchasing trust
An exchange trust
