What is a REIT?
A real estate investment trust (REIT) is a company that primarily owns and manages real estate properties. It is set up as a corporation, shares of which may be purchased by investors. Collectively, all shareholders own investment units of a company that owns various properties.
Before REITs came along, the American Dream of owning real estate was somewhat limited. Ordinary investors could not easily reap the benefits of owning large commercial properties – an opportunity available mainly to wealthy individuals and large institutional investors. Congress created REITs in 1960 to make it possible for the average investor to own income-generating real estate.








