Firms in the real estate investment trusts (REITs)

Firms in the real estate investment trusts (REITs)

This paper focuses on MBA 570 Firms in the real estate investment trusts (REITs). This discussion question has two parts. Use Figure 15.7 in your textbook which shows the net debt-to-enterprise value ratio for some select industries to answer both parts of the question. Respond to both parts to receive full credit for this assignment.

MBA 570 Firms in the real estate investment trusts (REITs)

This discussion question has two parts. Use Figure 15.7 in your textbook which shows the net debt-to-enterprise value ratio for some select industries to answer both parts of the question. Respond to both parts to receive full credit for this assignment.

Part 1:

Firms in the real estate investment trusts (REITs), airlines, electric utilities, and paper products industries tend to have high leverage. Explain why firms in these industries would prefer to have high leverage.

Part 2:

Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries tend to have low leverage. Explain why firms in these industries would prefer to have low leverage.

More details;

Firstly, A real estate investment trust is a company that owns, and in most cases operates, income-producing real estate.

Secondly, REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and timberlands. Some REITs engage in financing real estate.

Include some news from an article that is less than a year old that is applicable to this discussion.