Real Estate Investment Trust (REIT)

Definition: A company that owns, operates, or finances income-producing real estate and meets requirements for REIT tax treatment, allowing investors to participate through securities.

Example

An investor buys shares in a REIT holding a portfolio of rental properties.

Keep the distinction clear

REITs are not all publicly traded, and they are not required to use a common-law trust form. Liquidity, assets, fees, and risks differ among REIT structures.

Related terms

Investment · Business Trust Syndicate · Liquidity

Keep studying

Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return

References: SEC Investor.gov: real estate investment trusts

Pronunciation (US): REE-ul ih-STAYT in-VEST-munt TRUST; REET (capitals show stress)