Real Estate Investment Trust Portfolio
Part of the Azzad Ethical Wrap Program
A comprehensive halal wealth management solution for high net worth clients, organizations, and business owners.
Why Real Estate Investment Trusts?
Real estate investment trusts are companies that buy, sell, develop, and manage real estate such as office buildings, apartment complexes, shopping malls, self-storage units, and housing developments.
REITs make money from rental income, services to tenants, and profits from the sale of properties.
REITs also receive special tax considerations: they don’t have to pay taxes as long as they pay out at least 90% of their net income to their shareholders. Because of this, successful REITs can offer investors high yields, current income, and moderate growth.
Azzad Asset Management is a registered investment adviser headquartered in the suburbs of Washington, D.C.
Azzad is committed to managing clients’ money according to a responsible investment philosophy based on faith-based values and incorporating a rigorous and disciplined investment approach.
Azzad believes that companies operating in ethical lines of business offer relatively less business risk and are in a better position to thrive in the long-term.
The firm’s proprietary screening process allows the manager to prudently manage client assets in a manner consistent with their values.
Meet the Manager
Shaza Farawati holds a bachelor’s degree in business administration (BBA) and a Master of Science degree in finance (MSF) from American University in Washington D.C. She started her career in finance at Dubai Islamic Bank as a personal finance advisor and currently sits on Azzad Asset Management’s investment committee.
Investment Approach
Azzad REIT portfolio leverages fundamental analysis to identify compelling investment opportunities in real estate investment trusts. Through rigorous bottom-up research, we evaluate each REIT’s business model and assess its intrinsic value using key metrics like funds from operations (FFO).
This approach helps us construct a portfolio of REITs we believe are trading below their long-term potential. We maintain careful diversification across property sectors, geographic regions, and market caps, while actively adjusting positions to capitalize on market shifts and new valuation opportunities.
