REITs - Page 4

REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance income-generating real estate across a range of property sectors. They allow individual investors to earn a share of the income produced through commercial real estate ownership without having to buy, manage, or finance any properties themselves. REITs typically distribute the majority of their taxable income to shareholders in the form of dividends, making them an attractive option for income-seeking investors. By pooling capital from many investors, REITs can invest in large-scale real estate projects, providing diversification and liquidity. They are traded on major stock exchanges, similar to stocks, which makes it easy for investors to buy and sell shares. There are several types of REITs, including equity REITs, which own and operate properties, mortgage REITs, which provide financing for income-producing real estate, and hybrid REITs, which combine both strategies.