A real estate investment trust (REIT) is a company that owns,operates,or finances income-producing properties.REITs generate a steady income stream for investors but offer little in the way of capital appreciation.Most REITs are publicly traded like stocks,which makes them highly liquid (unlike physical real estate investments).More items…
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What is a real estate investment trust (REIT)?
What Is a Real Estate Investment Trust (REIT)? A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors.
How do I buy real estate investment trusts?
You can also purchase shares in a REIT mutual fund or REIT exchange-traded fund. Publicly traded REITs can be purchased through a broker. Generally, you can purchase the common stock, preferred stock, or debt security of a publicly traded REIT. Brokerage fees will apply. Non-traded REITs are typically sold by a broker or financial adviser.
What is a’real estate investment trust-REIT’?
What is a ‘Real Estate Investment Trust – REIT’. A real estate investment trust, or REIT, is a company that owns, operates or finances income-producing real estate. For a company to qualify as a REIT, it must meet certain regulatory guidelines.
What are the requirements of a real estate investment trust?
Receive at least 75% of its gross income from real property rents, interest on mortgages financing the real property, or from sales of real estate Return a minimum of 90% percent of its taxable income in the form of shareholder dividends each year Have a minimum of 100 shareholders after its first year of existence