Plain-English definitions, reviewed by an independent investor
REIT
A REIT is a company that owns or finances income property and must pay out most profit as dividends.
A REIT is a company that owns or finances income property and must pay out most profit as dividends.
(Real Estate Investment Trust — a pass-through structure)
Why it matters
It lets you own real estate yield without buying buildings.
Common confusion
Rates matter: rising rates can pressure REIT prices even as dividends hold.
Frequently Asked Questions
Why do REITs pay high dividends?
Tax rules require distributing most taxable income to shareholders.
REIT vs direct property?
Liquid and small-ticket, but you take market-price risk.