What is REIT (Real Estate Investment Trust)?
A REIT is a company that owns, operates or finances income-producing real estate. Investors can purchase shares in a REIT to gain exposure to property sectors like residential, commercial, industrial or specialized infrastructure without directly owning property themselves.
REITs are required to distribute a large portion of their taxable income (typically 90% or more) to shareholders in the form of dividends.
Publicly traded REITs offer liquidity and accessibility similar to stocks, while private or non-traded REITs may provide exposure to niche markets but with less flexibility.
REITs can provide portfolio diversification, offering benefits such as, real estate exposure, dividend income and inflation hedging, within a more liquid and regulated structure.
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