Helping Women Make Smart Investment Decisions
Real Estate Investment Trusts (REITS)
What is a Real Estate Investment Trust (REIT)?
A real estate investment trust (REIT) is a company that owns and operates income-generating real estate. REITs allow individual investors to invest in a professionally managed portfolio of real estate assets, such as apartments, shopping centers, office buildings, and more.
REITs are required to pay out at least 90 percent of their taxable income to shareholders in the form of dividends. This makes this style of ownership an attractive option for investors who want a regular income stream from their investments without the hassles of managing a property.
REITs can be publicly traded on stock exchanges, or they can be privately held. Some REITs own and operate a single property, while others own a diversified portfolio of properties.
What are some types of REITS?
There are several types of real estate investment trusts (REITs), including:
- Equity REITs: These own and manage income-generating real estate properties, such as apartment buildings, shopping centers, and office buildings.
- Mortgage REITs: These invest in mortgage-backed securities and provide financing for real estate owners and developers.
- Hybrid REITs: These combine elements of both equity REITs and mortgage REITs.
- Public REITs: These are REITs that are traded on a public stock exchange and are owned by a large number of shareholders.
- Private REITs: These are REITs that are not traded on a public stock exchange and are typically owned by a small number of investors.