Retail REITs (Real Estate Investment Trusts)

Retail REITs are companies that own and manage shopping centers, malls, and retail stores. They generate income primarily through leasing space to retailers, earning rent from those tenants. Investors buy shares of these REITs to gain exposure to the retail property market without directly owning physical property. Retail REITs often pay out most of their taxable income as dividends to shareholders and can offer a steady income stream. Their performance depends on factors like consumer spending, retail sales, and the health of the economy. They are a way to invest in commercial real estate efficiently and transparently.