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Reit PDF
Reit PDF
REITs, or real estate investment trusts, are companies that own or finance
income-producing real estate in a range of property sectors. These
companies have to meet a number of requirements to qualify as REITs.
Most REITs trade on major stock exchanges, and they offer a number of
benefits to investors.
REITs allow anyone to invest in portfolios of real estate assets the same
way they invest in other industries – through the purchase of individual
company stock or through a mutual fund or exchange traded fund (ETF).
The stockholders of a REIT earn a share of the income produced through
real estate investment – without actually having to go out and buy,
manage or finance property.
REITs are real estate working for you. Through the diverse array of
properties they own, finance and operate, REITs help provide the
essential real estate we need to live, work and play. REITs of all types
collectively own more than $3 trillion in gross assets across the U.S., with
stock-exchange listed REITs owning approximately $2 trillion in assets.
U.S. listed REITs have an equity market capitalization of more than $1
trillion. In addition, more than 80 million Americans invest in REIT
stocks through their 401(k) and other investment funds.
REIT Categories:
• Private REITs - Private REITs are offerings that are exempt from
SEC registration and whose shares do not trade on national stock
exchanges.
Most REITs typically pay out all of their taxable income as dividends to
shareholders. In turn, shareholders pay the income taxes on those
dividends.