Real Estate Investment Trusts, or REITs, are companies that own, operate, or finance income-producing real estate across a range of property sectors. They provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves.
Investing in REITs allows individuals to diversify their portfolios and gain exposure to the real estate market. These trusts are typically traded on major stock exchanges, making them a liquid investment option. They are required to distribute at least 90% of their taxable income to shareholders, which often results in attractive dividend yields.