Commercial Mortgage Backed Security (CMBS)Real Estate Asset Trust (REAT)
CMBS REAT refers to an arrangement; in which, originator (owner) transfers his/her property to the Agency Trustee through Property Trust for the issuance of bond-type commercial papers beneficiary certificates. The commercial papers beneficiary certificates are then sold to investors. The rental and other incomes generated by the property minus net of relevant operational costs and reserves are used to make interest payments to investors on a semi-annual basis. Principals will be paid back on the maturity date.

Real Estate Investment Trust (REIT)
REIT is a type of trust; in which, the Agency Trustee gathers funds from the public and uses the funds to purchase a specific pool of commercial properties from the initiator sponsor (owner). The purchased property is placed into a trust account. The rental and other incomes net of daily operational expense and reserves are distributed to the investors yearly based on a pre-determined payout rate.