Real Estate Investment Trust

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. Investors buy shares of the REIT, giving them a stake in properties like office buildings, shopping centers, apartments, or hotels. REITs generate revenue mainly through rent payments, which they pass on to shareholders as dividends. They provide a way for individuals to invest in real estate without directly buying properties, offering diversification and liquidity similar to stocks. REITs are often traded on stock exchanges and are required to distribute most of their taxable income to shareholders, making them an attractive income-generating investment.