Real Estate Investment Trust (REIT)

Real Estate Investment Trust, or REIT briefly corporation, or trust, the pooled capital of many investors to purchase income and assets to manage. REITs can be a company that buys, develops, manages and sells real estate assets

REITs can individual participants or to invest in a professionally managed portfolio of real estate.

REITs are granted special tax considerations, which in certain countries. REITs as a pass-through institutions, companies, which are able to distribute the majority of income cash flows to investors without taxation at the corporate level (provided that certain conditions are met). As a pass-through units whose main function is to secure profits to investors, a REIT's business activities are generally restricted to generation of property rental income

REITs offer several advantages over real properties. First, REITs are usually on the main exchanges like stocks, they are very liquid, in contrast to conventional real estate. Secondly, REITs for the common and non-residential properties as well as hotels, shopping malls and other commercial or industrial properties. Thirdly, there is no minimum investment in REITs. REITs do not necessarily rise and fall in value along with the broader market. However, they pay the income in the form of dividends, no matter how the shares.

REITs can be value based on the basic measures, similar to the valuation of stocks, but different numbers are usually important that REITs than in shares.

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