Definition
REITs own and operate income-producing real estate through publicly traded or private shares. They provide real estate exposure with stock liquidity.
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REITs own and operate income-producing real estate (apartments, offices, retail, industrial). Must distribute 90% of taxable income to shareholders. Traded on exchanges like stocks or privately held. Diversification across property types and locations. Professional management reduces investor burden. Liquid investment compared to direct property ownership. Tax benefits for qualified investors. Dividend income is taxable. Growing market with numerous REITs. Lower capital requirements than direct ownership.
Pro Tip
REIT investments provide real estate exposure with stock market liquidity.
Example
A publicly-traded apartment REIT provided dividend returns from nationwide portfolio.