What Is a REIT?

REITs let you invest in real estate without buying property. They offer high dividend yields and portfolio diversification.

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A REIT (Real Estate Investment Trust) is a company that owns income-producing real estate and must distribute at least 90% of taxable income as dividends to shareholders.

Real-world example: Buying shares of a public REIT like Realty Income gives you landlord-style income from thousands of properties.

Explore more terms in our comprehensive Financial Glossary with 140+ terms explained in plain English.

Frequently Asked Questions

Why is understanding a REIT important for investors?

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Knowing what a REIT means helps you make better financial decisions, read investment news with confidence, and avoid common mistakes. Financial literacy is the foundation of successful investing — understanding concepts like a REIT puts you ahead of most individual investors.

How does a REIT relate to everyday personal finance?

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a REIT isn't just Wall Street jargon — it directly impacts how your money grows (or doesn't). Whether you're managing a 401(k), evaluating a savings account, or considering an investment, understanding a REIT helps you make choices that align with your financial goals.

Where can I learn more about investing concepts?

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Our Financial Glossary covers 140+ terms across investing, retirement, taxes, credit, crypto, and budgeting — all explained in plain English with real-world examples. You can also use our calculators to see these concepts in action with your own numbers.

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