A REIT, or Real Estate Investment Trust, is a company that owns, operates, or finances income-producing real estate. Investors can buy shares in a REIT, allowing them to invest in large-scale properties like apartments, office buildings, and shopping malls without having to buy or manage the properties themselves. This makes real estate investment more accessible to everyday people.
REITs are required to distribute at least 90% of their taxable income to shareholders as dividends, making them an attractive option for those seeking regular income. They also provide diversification in an investment portfolio, as they often include various types of properties across different locations.