Glossary · from the DESK dictionary
REIT
A publicly traded company that invests in real estate and is required to distribute most of its income as dividends.
In plain words
A way to invest in real estate like a stock, without having to buy a physical building yourself.
In more detail
REITs typically benefit from tax advantages, but in exchange are legally required to distribute a high share of their taxable income.
What it means for traders
A popular, liquid vehicle for real estate exposure and income-focused investment strategies.
Common pitfalls
Often sensitive to interest rate changes — rising rates typically weigh on REIT prices.
Related terms
Adjusted Funds From Operations (AFFO) · Business Trust · Cap Rate · Dividend Yield · Funds From Operations (FFO) · Finite-Life Real Estate Investment Trust (FREIT) · J-REIT · Listed Property Trust · NAREIT (National Association of Real Estate Investment Trusts) · Real Estate Investment Trust (REIT) · Sale-and-Leaseback · Trust
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.