Investing · 3 min read
REITs: Owning Real Estate Simply
A Real Estate Investment Trust owns income-producing property. Buying units gives you a share of rents and appreciation.
Why it matters
REITs let small investors get real-estate exposure without buying property.
Advantages
- Regular income distributions
- Diversified property portfolio
- Listed and liquid
Risks
- Interest-rate sensitive
- Property market cycles
- Occupancy risk
Real-world example
An investor buys 100 units of a REIT and receives quarterly rental distributions plus potential price gains.
Key takeaways
- Consider REITs for income + growth
- Understand the asset mix (offices, malls, warehouses)
- Yield alone isn't the full picture
Quick quiz
1. REITs primarily invest in: