REIT
DefinitionReal Estate Investment Trust. A corporation or trust that uses the pooled capital of many investors to purchase and manage income property (equity REIT) and/or mortgage loans (mortgage REIT). REITs are traded on major exchanges just like stocks. They are also granted special tax considerations. REITs offer several benefits over actually owning properties. First, they are highly liquid, unlike traditional real estate. Second, REITs enable sharing in non-residential properties as well, such as hotels, malls, and other commercial or industrial properties. Third, there's no minimum investment with REITs. REITs do not necessarily increase and decrease in value along with the broader market. However, they pay yields in the form of dividends no matter how the shares perform. REITs can be valued based upon fundamental measures, similar to the valuation of stocks, but different numbers tend to be important for REITs than for stocks.
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REIT is ...
... part of the Real Estate and Stocks subjects.
... part of the Real Estate and Stocks subjects.
... an essential investing term.
Related Terms
FREIT, Funds From Operations, NAREIT, National Association of Real Estate Investment Trusts, income trust, adjusted funds from operations, CMO REIT, Corporate Securities Limited Representative
REIT appears in these other terms
mortgage REIT, hybrid REIT
REIT appears in the definitions of these other terms on BusinessDictionary.com
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