Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate. They allow individual investors to earn a share of the income generated from properties like apartments, hotels, or shopping centers without directly buying or managing them. By pooling money from many investors, REITs can purchase large properties and distribute at least 90% of their taxable income as dividends. This makes them a popular way to invest in real estate while maintaining liquidity, as shares can easily be bought and sold on stock exchanges, much like stocks.