Quick Definition

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate, allowing investors to earn a share of the income produced without having to buy, manage, or finance any properties themselves.

Examples

• 1An investor buys shares in a REIT that owns a portfolio of shopping malls, earning dividends from the rental income.
• 2A REIT specializing in office buildings distributes profits to shareholders from leases paid by corporate tenants.
• 3A healthcare REIT invests in hospitals and nursing facilities, providing investors with income derived from healthcare services real estate.

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