What are REITs & how do they work?

REITs are companies that own, operate, or finance income-generating real estate including offices, apartments, shopping centers, hotels, and more. Most REITs are publicly traded and enable investors to earn dividends from real estate without having to buy individual properties.

What is a REIT in real estate?

A REIT is a company that owns and typically operates income-producing real estate or related assets. These may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans. Unlike other real estate companies, a REIT does not develop real estate properties to resell them.

Are REITs a good investment?

REITs generate a steady income stream for investors but offer little capital appreciation. Most REITs are publicly traded like stocks, which makes them highly liquid, unlike real estate investments. REITs invest in apartment buildings, cell towers, data centers, hotels, medical facilities, offices, retail centers, and warehouses.