Real Estate Trusts

Real Estate Trusts, commonly known as Real Estate Investment Trusts (REITs), are companies that own, operate, or finance income-producing real estate across a range of property sectors. REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves.

REITs typically operate under the framework of a trust or corporation and are structured to distribute a significant portion of their taxable income as dividends to shareholders. This makes them an attractive investment for those seeking regular income. They can invest in various types of properties, including residential, commercial, industrial, and healthcare facilities.

REITs are usually traded on major stock exchanges, allowing investors to buy and sell shares easily. They offer liquidity and diversification benefits, as they pool capital from many investors to invest in large-scale real estate projects that might otherwise be inaccessible to individual investors. In addition, REITs are often tax-advantaged due to specific regulations that exempt them from corporate income tax, provided they meet certain distribution requirements.