A REIT is any entity that acts an investment agent for real estate. Often the associations or corporations running the investment also own and operate the underlying income-producing properties.
REIT or Wrong?: American Capital Realty REITs Under Fire
The possibility of accounting irregularities have triggered an SEC inquiry into Schorsch’s flagship company, American Realty Capital Properties, because of what may be overstated earnings statements and an alleged cover-up by the company’s management. The general impression in the financial world - that Schorsch may be overextended and/or losing control of his empire - may also be a cause of the steady erosion of the valuation of his companies and funds.