Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts (REITs) are a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock. REITs provide investors with an opportunity to invest in a professionally managed portfolio of real estate assets. REITs are required to distribute at least 90% of their taxable income to shareholders annually, making them an attractive investment for income-seeking investors. REITs can be publicly traded on major exchanges, publicly registered, or privately offered.
History of REITs
REITs were first introduced in the United States in 1960 as a way to provide investors with access to professionally managed real estate investments. Since then, REITs have become a popular investment vehicle for both institutional and individual investors. REITs are now available in many countries around the world, including the United States, Canada, Australia, Japan, and the United Kingdom.
Comparison of REITs
| Type of REIT | Minimum Investment | Tax Treatment |
|---|---|---|
| Publicly Traded | $1,000 | Taxable |
| Publicly Registered | $5,000 | Taxable |
| Privately Offered | $25,000 | Tax-Deferred |
Summary
Real Estate Investment Trusts (REITs) are a type of security that invests in real estate through property or mortgages and often trades on major exchanges like a stock. REITs provide investors with an opportunity to invest in a professionally managed portfolio of real estate assets. REITs are required to distribute at least 90% of their taxable income to shareholders annually, making them an attractive investment for income-seeking investors. For more information about REITs, visit the websites of the National Association of Real Estate Investment Trusts (NAREIT) or the U.S. Securities and Exchange Commission (SEC).
See Also
- Real Estate Investment Funds (REIFs)
- Real Estate Mutual Funds (REMFs)
- Real Estate Exchange Traded Funds (REETFs)
- Real Estate Limited Partnerships (RELPs)
- Real Estate Operating Companies (REOCs)
- Real Estate Investment Banking (REIBs)
- Real Estate Investment Advisors (REIAs)
- Real Estate Investment Trusts (REITs)
- Real Estate Investment Companies (REICs)
- Real Estate Investment Groups (REIGs)
