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 invest in real estate investment trusts?
Individuals can invest in REITs either by purchasing their shares directly on an open exchange or by investing in a mutual fund that specializes in public real estate. Some REITs are SEC-registered and public, but not listed on an exchange; others are private.
What are the qualifications of a real estate investment trust?
To qualify as a REIT a company must: Invest at least 75 percent of its total assets in real estate. Derive at least 75 percent of its gross income from rents from real property, interest on mortgages financing real property or from sales of real estate.
What is a captive real estate investment trust?
A captive real estate investment trust is a REIT that is controlled by a single company and is established for tax purposes. Funds available for distribution is an internal, non-GAAP measure of the amount of capital that is on hand for REITS to pay to investors.