REITs are similar to stocks but for the commercial real estate industry. They are trusts that buy commercial properties that produce income, such as apartments, office buildings, and shopping centers. When you buy shares of a REIT, you become a part owner in all of the property holdings of the REIT.
REITs are traded like stocks on the major stock exchanges, so they provide the liquidity of stocks with the diversification and income of commercial real estate. Most importantly for investors REITs must pay shareholder dividends of at least 90 percent of its taxable income. Whilst not for everyone REITs can be used to have a stake in the real estate market as part of a diversified portfolio.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.