What Is REIT (Real Estate Investment Trust)? Meaning & Example
Definition
A REIT is a company that owns or finances income-producing real estate and typically pays out most of its income as dividends. It lets investors gain property exposure without buying buildings directly.
Related terms
Dividend yield is the annual dividend per share divided by the share price, expressed as a percentage. It shows the income return from dividends alone.
DiversificationDiversification means spreading money across different investments so one poor performer does not sink your whole portfolio. It reduces risk but cannot eliminate it.
Interest RateAn interest rate is the cost of borrowing money or the reward for saving it, shown as a yearly percentage. Central bank rate decisions influence rates throughout the economy.
What is REIT (Real Estate Investment Trust)?
A REIT is a company that owns or finances income-producing real estate and typically pays out most of its income as dividends. It lets investors gain property exposure without buying buildings directly.
Can you give an example of REIT (Real Estate Investment Trust)?
Buying shares of a REIT that owns warehouses gives you a slice of the rental income they generate.