Real Estate Investment Trust (REIT)

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REIT stands for Real Estate Investment Trust. A REIT invests directly in real estate, either through properties or mortgages, and is traded as a security on a stock exchange. REITs tend to offer investors high yields, and they receive special tax considerations.

  • Equity REITs invest in and own properties. Revenue comes principally from their properties' rents.
  • Mortgage REITs deal invest in property mortgages. They lend money for mortgages to owners of real estate, or purchase existing mortgages or mortgage-backed securities. Revenues come primarily from the interest that they earn on the mortgage loans.
  • Hybrid REITs invest in both properties and mortgages.



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