Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate across various property sectors. They allow individual investors to earn a share of the income produced through commercial real estate ownership without having to buy, manage, or finance any properties themselves. REITs typically invest in properties like shopping malls, office buildings, and apartments, and they must distribute at least 90% of their taxable income to shareholders in the form of dividends.
Investing in REITs can provide a way to diversify a portfolio and gain exposure to the real estate market. They are traded on major stock exchanges, making them accessible to everyday investors. Additionally, REITs can be categorized into different types, such as equity REITs, which