Real estate you can trade
REITs
What is it?
REITs pool investor money to own income-producing property and distribute rental income back to unit holders.
How does it work?
REIT units trade on exchanges like stocks. Distributions are typically quarterly.
Benefits
- Regular income
- Real-estate exposure without buying property
- Professional management
Risks
- Interest-rate sensitivity
- Property cycle risk
- Occupancy risk
Important terms
- DPU
- Distribution per unit (payout to holders).
- NOI
- Net Operating Income from properties.
Common mistakes
- • Focusing only on yield
- • Ignoring asset quality
Beginner tips
- • Understand asset mix (offices, malls, warehouses)
- • Total return = income + growth
Educational only. This page explains how reits work. It is not a recommendation to buy, sell, or hold any specific asset.