REIT
Real Estate Investment Trust
A company that owns, operates, or finances income-generating real estate and distributes most of its income to shareholders.
REITs provide a way for investors to invest in real estate without directly owning property. They must distribute at least 90% of taxable income to shareholders as dividends, making them attractive income-generating investments. REITs can be equity REITs (owning properties), mortgage REITs (providing financing), or hybrid REITs (combining both). They cover various property sectors including residential, commercial, industrial, healthcare, and specialized properties like data centers or cell towers. REITs trade on exchanges like stocks and offer liquidity not available in direct real estate investment. They provide professional management, diversification across properties, and access to large-scale real estate investments for smaller investors.
Example
Simon Property Group (SPG) - retail, American Tower (AMT) - cell towers, Realty Income (O) - commercial