REITs–Real Estate Investment Trusts

Posted on May 9, 2012 | Investing

A real estate investment trust (REIT) is a corporation or trust that purchases and manages income property and/or mortgage loans. REITs were created by the U.S. Congress in 1960, with the intention of making large-scale, income-producing real estate accessible to small investors.

REITs are similar to traditional stocks in that the securities are traded on major exchanges. However, unlike a company that manufactures, markets or distributes goods or services to customers, a REIT owns and operates income-producing real estate, such as apartments, shopping centers, offices, hotels and warehouses.

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