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Real Estate Investment Trust

An investment company that invests exclusively in real estate and mortgages. The REIT issues a fixed number of shares at its establishment, and afterward neither increases nor decreases the number of shares. An REIT is actively managed, meaning that the real estate underlying the trust change from time to time in accordance with the fund's investment goals. A shareholder may trade shares in the REIT as if they were stocks. The value of shares in a real estate investment trust is determined by supply, demand, and the trust's net asset value. Importantly, the REIT itself is not taxed; rather taxes are passed on to shareholders.


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.


See real estate investment trust.

References in periodicals archive ?
Baker & McKenzie's Asia-Pacific REIT Group has been at the forefront of ground-breaking REIT transactions in Asia.
If anything, the record breaking level of M&A activity in 2006 showed that the public market has underestimated REIT net asset values.
Instead of competing with well-established REITs funds, which often drive up A-class prices in bidding wars, newer entrants are looking to B-class, or mid-size, property offerings.
856(c)(7), many debts owed to a REIT by individuals and businesses did not qualify for this exception.
A REIT will hold a mortgage on a property or work out a purchase/lease-back arrangement in which the REIT will, with the assistance of an operator, acquire a property and then lease it back to the operator.
When considering a REIT investment, a key item you should look at is growth potential.
Qualified temporary investment interest includes any income from stock or debt attributable to the temporary investment of new capital received within one year after the REIT received the capital.
The best REIT to entrust your money with is a self-administered operation managed by a fully integrated real estate team.
KBS REIT I Investors who have lost money in KBS REIT Investments are encouraged to contact our securities attorneys to discuss their potential claims for recovery.
The REIT industry's evolution in the last decade alone has been both eyecatching and breathtaking," according to NAREIT president and CEO, Steven A.
Example: B, an investor in REIT R, invested $10,000 for stock with a $10,000 current fair market value and a 10% dividend yield (i.
David Benson is President of and Lisa McAlister Chief Financial Officer of Meditrust, the nation's largest healthcare REIT, stock symbol: MT on the New York Stock Exchange.