Co-produced with The Belgian Dentist
Internal versus external management
A REIT is externally managed when its management team is employed by a separate business on a fee-for-service basis. Often, an external manager will provide services to a series of different entities. RMR Group (RMR), for example, is the external manager of 4 REITs: Hospitality Properties Trust (HPT), Senior Housing Properties Trust (SNH), Office Properties Income Trust (OPI) and Industrial Logistics Properties Trust (ILPT).
A REIT which employs its own management team is “internally managed.”