REIT (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, similar to stocks, which provides them with regular income from the properties' rents and property appreciation. REITs offer a way for individuals to invest in large-scale real estate without directly purchasing properties. They are required to distribute most of their taxable income as dividends, making them a popular choice for income-focused investors. REITs are traded on stock exchanges, providing liquidity and diversification within a real estate investment portfolio.