A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. Investors can buy shares in a REIT, allowing them to invest in real estate without having to buy properties directly. REITs typically focus on specific sectors, such as residential, commercial, or industrial properties, and they generate income primarily through rent and property sales. REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This makes them an attractive option for income-seeking investors. Additionally, investing in REITs can provide diversification in a portfolio, as they often behave differently than stocks and bonds.