Such investment structures were known as listed property trusts (LPT) in Australia until February 2008, but were renamed to be more consistent with international terms.
An A-REIT usually owns a portfolio of large properties, which, due to their size and value, cannot be bought by the average private investor.
Around this time they were viewed as a substitute for direct property investing, with enhanced liquidity offered as they were listed.
As of July 2012 the Australian public real estate sector consists of a total market capitalization of almost €72 billion, accounting for 9.36% of the global real estate investment trust (REIT) market capitalization.
Other sources of income include naming or signage rights, roof space for telecommunication companies, and car parking rental.
Property trusts must distribute at least 90 percent of their income back to the unit holders.
Net tangible assets (NTA) is the balance sheet value of the underlying properties in an A-REIT.
As a result, in the past most A-REITs tended to trade at close to their NTA over the long-term average.
It helps to spread the risk in a portfolio as the property value cycles are driven by different underlying economic fundamentals in each sector.