A Real Estate Investment Trust, also known as a "REIT" (pronounced "reet"), is a company whose primary business is owning and managing real estate properties such as office and industrial buildings, apartment buildings, hotels, warehouses, health care facilities, shopping malls, or golf courses.
Individual REITs may focus on one sector. While many REITs invest directly in these properties, some types of REITS can also invest in real estate related loans (such as mortgages). A hybrid type of REIT can invest in a combination of real properties and mortgages. Structurally, a REIT is set up as a company, shares of which may be purchased by investors. The management of the REIT company uses those pooled investment dollars to buy and manage an array of properties. Collectively, all shareholders own investment units of a trust that owns various properties. |