| Topic | ARY real-estate NFT | REIT (Real Estate Investment Trust) |
|---|---|---|
| What you own | A token on ARY that points to rights defined off-chain (usually via an SPV/contract). By itself, an NFT does not grant deed ownership unless the legal docs say so. | Equity in a regulated company that owns/finances properties. Statutory rights attach to the shares. |
| Legal wrapper | Optional but essential in practice: SPV (LLC/LP) operating agreement mapping token ↔ economic/ governance rights. | Mandated corporate structure with trustees/board; must meet REIT tests (assets, income, distributions). |
| Cash flows | Programmed on-chain (stablecoin payouts) if the off-chain lease income is bridged and permitted by docs. | Must distribute ≥90% of taxable income to shareholders (jurisdiction-specific). Paid in fiat via transfer agents/brokers. |
| Regulation | Varies; tokenized securities likely fall under securities laws (KYC/transfer restrictions). Compliance is your burden. | Heavily regulated (SEC or local equivalent), ongoing reporting, audits. |
| Liquidity | Marketplace-dependent; can be great, can be thin. Transfers often must be KYC/whitelist-gated. | Public REITs trade on exchanges (high liquidity); private REITs offer limited redemption windows. |
| Price discovery | On-chain bids + periodic NAV oracles; can be volatile vs. appraisal/NAV. | Exchange price (public) or periodic NAV (private). |
| Taxes | Typically capital gains on sales; distributions depend on how the SPV characterizes them. | REIT dividends have specific tax treatment; reporting is standardized. |
| Governance | Smart-contract + SPV rules; can be token-holder votes, but enforcement still relies on the SPV. | Shareholder votes under company law; established remedies. |
| Operational lift | You must solve KYC/AML, transfer restrictions, audits, rent oracles, corporate actions on-chain. | Admin handled by REIT management, transfer agent, exchange, auditors. |
| Investor access | Potentially global (subject to compliance gates); can support smaller tickets, fractional units. | Public REITs: broad access; private REITs: often accredited/qualified investors only. |
When to use which
- ARY NFT fits if you want programmable cash-flows, 24/7 settlement, fractional access, and product agility (e.g., per-property or per-lease tokens) — and you can shoulder compliance + off-chain enforcement via an SPV.
- REIT fits if you want mature regulation, standardized reporting, broad broker access, and robust legal recourse — accepting slower iteration and heavier admin.
“REIT-like” ARY
- SPV wrapper: Each property (or pool) sits in an LLC/LP. The operating agreement defines the token as the membership/beneficial interest.
- Compliance gate: KYC/AML + jurisdiction/holder caps; enforce via ARY transfer-restriction policy (whitelists, lockups, 144A-style tiers).
- Cash-flow bridge: Rents → fiat bank → stablecoin → on-chain distributor contract; record NAV updates via an auditor/oracle feed.
- Corporate actions: On-chain modules for distributions, redemptions, buybacks, vote, and freeze in case of legal orders.
- Auditability: Immutable event log; periodic off-chain financials anchored on-chain (hashes).
- Secondary trading: A permissioned ARY marketplace that only lists whitelisted holders and honors transfer rules.
Bottom line: ARY NFTs can unlock finer granularity, programmability, and global rails,