What document outlines the investment strategy and portfolio composition of a REIT?

The prospectus is a crucial document for a Real Estate Investment Trust (REIT) as it provides comprehensive details about its investment strategy and the composition of its portfolio. This document serves as a formal means of communication to potential investors, outlining how the REIT aims to achieve its financial goals, the types of real estate assets it intends to acquire, and the target markets or sectors it will focus on.

Additionally, the prospectus includes information about the associated risks, management philosophy, and the REIT’s operational plan. By understanding the investment strategy laid out in the prospectus, investors can make informed decisions about whether the REIT aligns with their investment objectives and risk tolerance.

Comparatively, an annual report typically summarizes a company's performance over the past year and may touch on investment strategies but lacks the detailed focus of a prospectus. A tax statement primarily deals with the tax obligations and financial history of the entity rather than its strategy. A market analysis examines market conditions and trends but does not provide the specific investment framework or portfolio details of a REIT.