Real Estate Investment Trusts: How They Work & Why Invest
Antara Bhattacharyya
What Are REITs?
REITs are companies that own or finance income-producing real estate across various sectors, offering easy access to real estate investments.
How Do REITs Work?
REITs collect rent or interest from properties, then distribute income to shareholders as dividends, offering steady passive returns.
Types of REITs
REITs come in different forms, equity, mortgage, or hybrid, each focusing on property ownership, lending, or a combination of both.
Why Invest in REITs?
REITs offer portfolio diversification, regular dividend income, and potential long-term growth tied to real estate market performance.
Access and Liquidity
Publicly traded REITs are bought and sold like stocks, providing liquidity and easy entry for individual investors into real estate.