Real Estate Investment Trusts, or REITs, are companies that own, operate, or finance income-producing real estate. They allow individual investors to earn a share of the income produced through commercial real estate without having to buy, manage, or finance any properties themselves. REITs typically invest in various types of properties, including shopping malls, office buildings, and apartments.
Investing in REITs can provide a way to diversify a portfolio and gain exposure to the real estate market. They are required by law to distribute at least 90% of their taxable income to shareholders as dividends, making them an attractive option for income-seeking investors.