Real Estate Trusts

Real Estate Trusts, specifically known as Real Estate Investment Trusts (REITs), are companies that own, operate, or finance income-producing real estate across a range of property sectors. They provide a way for individuals to invest in large-scale, income-generating real estate without having to buy properties directly.

REITs are typically structured as publicly traded companies, allowing investors to buy shares on major stock exchanges. They are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, which makes them an appealing investment for income-seeking investors.

There are several types of REITs, including equity REITs, which own and manage income-producing properties; mortgage REITs, which provide financing for income-producing real estate by purchasing or originating mortgage loans; and hybrid REITs, which combine the features of both equity and mortgage REITs.

Investing in REITs offers diversification within the real estate sector and can provide exposure to real estate markets without the need for significant capital investment or active management.