Real estate investment trust (redirected from Reits)

Real Estate Investment Trust (REIT)

REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund.

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real estate investment trust (REIT)

A company that purchases and manages real estate and/or real estate loans. Some REITs specialize in purchasing long-term mortgages while others actually buy real estate. Income earned by a trust is generally passed through and taxed to the stockholders rather than to the REIT. See also equity REIT, mortgage REIT.

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Real estate investment trust (REIT). REITs are publicly traded companies that pool investors' capital to invest in a variety of real estate ventures, such as apartment and office buildings, shopping centers, medical facilities, industrial buildings, and hotels.

After an REIT has raised its investment capital, it trades on a stock market just as a closed-end mutual fund does.

There are three types of REITs: Equity REITs buy properties that produce income. Mortgage REITs invest in real estate loans. Hybrid REITs usually make both types of investments.

All three are income-producing investments, and by law 90% of a REIT's taxable income must be distributed to investors. That means the yields on REITs may be higher than on other equity investments.