RoCE of leading REITs listed on the London Stock Exchange (LSE) 2018
Return on capital employed (RoCE) is a measure of profitability and efficiency of a company and is calculated as the ratio of earnings before interest and tax to capital employed. A higher the ratio indicates a more profitable company. Among the real estate investment trusts (REITs) trading on the London Stock Exchange (LSE) with highest market cap as of January 31, 2020, Tritax Big Box Reit PLC ranked first by RoCE. In 2018, the REIT had RoCE of 9.71 percent. A REIT is a company that manages property on behalf of shareholders. Rather than developing new properties or reselling, REITs usually specialize in leasing space, collecting rent and then distributing dividends to shareholders. Mortgage REITs focus on lending money to real estate owners and operators.
