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    Reit

    /reit/

    Meaning & Definition

    noun
    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.
    Investing in a REIT allows individuals to gain exposure to the real estate market without the need to purchase physical properties.
    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.
    Many investors prefer REITs for their potential to provide regular dividend income.
    REITs can be specialized by property type, including residential, commercial, healthcare, and industrial.
    She decided to invest in a healthcare REIT to take advantage of the growing demand for senior housing.
    There are also non-traded REITs that are sold through brokers but not listed on stock exchanges, offering different liquidity profiles.
    Non-traded REITs can be a good option for investors looking for longer-term investments.
    REITs can also provide tax benefits, as they are often not taxed at the corporate level if they meet certain requirements.
    One of the advantages of investing in REITs is the favorable tax treatment that can enhance returns.

    Etymology

    The term REIT stands for Real Estate Investment Trust and was established in the 1960s.

    Common Phrases and Expressions

    REIT market
    Refers to the stock market segment where REITs are traded.
    dividend yield
    The dividend income produced by a REIT as a percentage of its share price.
    capital appreciation
    An increase in the value of the investment in a REIT over time.

    Related Words

    real estate
    Property consisting of land and the buildings on it.
    investment
    The action or process of investing money for profit.
    portfolio
    A range of investments held by a person or organization.

    Slang Meanings

    REITs may sometimes be referred to as 'property stocks' in casual conversations.
    I like to invest in property stocks for steady income.
    Some investors call REITs 'dividend machines' because they often pay high dividends.
    Those dividend machines really boost my monthly income!