Real Estate Investment Trusts, or REITs, are companies that own, operate, or finance income-producing real estate assets across various sectors, such as residential, commercial, industrial, and specialized niches, like healthcare or data centers. Established to provide everyday investors with access to large-scale real estate investments, REITs function much like mutual funds, pooling investor capital to acquire and manage properties.
Notably, by law, they must distribute at least 90% of taxable income to shareholders in the form of dividends. As a result, REITs are popular with investors seeking a stable source of passive income who also want exposure to the real estate market and the possibilities for capital appreciation in those projects.
