REIT (Real Estate Investment Trust)
Real estate dividends without owning property
Definition
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends, making them attractive for income investors. They trade on stock exchanges like regular stocks, giving investors real estate exposure without directly owning property.
Example
Simon Property Group (SPG) is a retail REIT owning 200+ premium shopping malls. It collects rent from tenants, pays operating costs, and distributes 90%+ of profits as dividends. An investor buying SPG stock at $120 with a 5% dividend yield receives $6 per share annually in dividends.
Related Terms
Frequently Asked Question
What is a REIT?
A REIT is a company that owns income-producing real estate and must distribute 90%+ of taxable income as dividends. REITs trade like stocks and give investors real estate exposure without direct ownership.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.