REIT

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Real Estate Investment Trust (REIT)

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing properties

The REITs are similar to mutual funds in that they pool the capital of numerous investors so that individuals can earn dividends from real estate investments without having to purchase , manage, or finance any properties themselves.

Key Takeaways


  • A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing properties.
  • REITs generate a steady income stream for investors but offer little in the way of capital appreciation.
  • Most REITs are publicly traded like stocks, which makes them highly liquid (unlike physical real estate investments).
  • REITs invest in most real estate property types, including apartment buildings, cell towers, data centers, hotels, medical facilities, offices, retail centers, and warehouses.