What Is a Real Estate Investment Trust (REIT)?

A REIT is a company that owns, operates, or finances income-producing real estate and allows investors to buy shares, similar to stocks. REITs offer a way to invest in real estate without directly owning property, providing regular dividend income and portfolio diversification.

In my experience, REITs appeal to those who want exposure to real estate but prefer a hands-off approach. They’re liquid, professionally managed, and historically perform well over the long term, especially in sectors like commercial, industrial, and multi-family housing.