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The Amb Consolidation Case Essay

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Introduction
The report presents a case about AMB, which is a leading pension real estate advisory firm that has recently proposed to turn itself into a publicly traded Real Estate Investment Trust (REITs) and is planning to persuade its client to contribute their real estate assets to create a new REIT. Furthermore, the report also includes considerations of Anne Shea, who is the Assistant Vice President at Curator’s Fund; which is considering exchanging her shares in the commingled fund for the shares in the REIT.
Real Estate Investment Trust (REITs)
Real Estate Investment Trust (REITs) invests in and own properties by offering investors a highly liquid method of investing in high-density markets. Most REITs earn their revenue from …show more content…

b) Increased statutory compliance: Public securities are required to comply with increased laws and regulations of the stock exchange and any other governing body; whereas, in private securities the organization is required to comply with minimum statutory requirements.
c) Disclosure of competitive information: Public securities are susceptible to disclose increased information that can be used by competitors.
Importance of REITs in Pension Fund
REITs plays a very important role in pension funds because it offers both income and upside. Further, it also provides an opportunity for pension funds to increase both liquidity and returns, and decrease volatility that will attract them so as to boost their investments in REITs.
An analysis of REIT’s nature and an evaluation of REIT as “Growth Stock” or “Value Stock”
REITs are securities that invest its major funds in real estate to produce income and distribute its majority of returns to their shareholders. Many individuals are interested in investing in stocks whereas some are interested in investing in real estate. REITs provide a combination of both by the individuals that are investing in securities and later on the trust will be investing in real estate. (Pagliari, 2005, 158)
Growth investors believe that the securities are above average earnings growth on the other hand, value stocks believe that the stocks are undervalued due to fallen out of favor in market place. Although, REIT invests

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