Meaning & Definition of word "Reit"

noun:

• 1. A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate and provides investors with a way to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves.
  • Example: Investing in a REIT allows individuals to gain exposure to the real estate market without the need to purchase physical properties.
• 2. REITs are typically publicly traded on major stock exchanges and are required to distribute at least 90% of their taxable income to shareholders in the form of dividends.
  • Example: Many investors prefer REITs for their potential to provide regular dividend income.
• 3. REITs can be specialized by property type, including residential, commercial, healthcare, and industrial.
  • Example: She decided to invest in a healthcare REIT to take advantage of the growing demand for senior housing.
• 4. There are also non-traded REITs that are sold through brokers but not listed on stock exchanges, offering different liquidity profiles.
  • Example: Non-traded REITs can be a good option for investors looking for longer-term investments.
• 5. REITs can also provide tax benefits, as they are often not taxed at the corporate level if they meet certain requirements.
  • Example: One of the advantages of investing in REITs is the favorable tax treatment that can enhance returns.