REITs (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 large-scale properties without directly buying or managing real estate. Investors can buy shares of REITs on stock exchanges, similar to stocks. By law, REITs must distribute at least 90% of their taxable income to shareholders as dividends, making them attractive for income-seeking investors. They cover various sectors, including residential, commercial, and industrial properties, providing a diversified investment option in real estate markets.