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REIT

REIT stands for Real Estate Investment Trust. Publicly traded REITs have to meet certain conditions to qualify as a REIT. They need to invest more than 75 percent of their assets in income generating real properties and they need to pay out 90 percent of their income in dividends to shareholders. Some REITs are specific to certain types of real estate while others hold a broad mix of commercial real estate, shopping malls, health care facilities and residential buildings. Investing in REITs is a good way for investors to diversify their portfolios as REITs don’t tend to track the main stock market indices.

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Andy

2 Comments

  1. Hi Andy,
    first to praise your great knowledge not only in this field but from the whole of finance. This can be seen from such an extensive and useful text, and I especially like that you have a prominent pros and cons for each method so that people can make an easz choise.
    I would love to try myself in this type of investing but I hesitated because as a beginner I didn’t have the right information. This text is therefore useful to me because it suggests it the best to buy into a REIT, regarding my rather modest budget. It’s great that you have links to better explain some terms, which makes it even safer for me to start entering even though I’m afraid of risk.
    Thanks and keep expanding your knowledge.
    Greetings, Danijela

    • Hi Danijela
      Thank you for your very positive feedback. I am glad you found the article useful. If you are some time in a position to start investing I would recommend that you read a bit more about all kinds of investments including stocks, bonds, and in particular indexed funds. I wish you all the very best of luck.
      Kind regards
      Andy

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