Real Estate Investment Trust

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate across a range of property sectors. It provides 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 directly. REITs typically operate in various segments of the real estate market, including residential, commercial, industrial, and healthcare properties, among others.

They are traded on major stock exchanges like stocks, allowing for liquidity and ease of investment. REITs must adhere to certain regulations, including returning at least 90% of their taxable income to shareholders in the form of dividends to benefit from special tax considerations. This structure allows investors to gain exposure to real estate, diversify their portfolios, and potentially receive regular income, while also participating in the appreciation of property values over time.