Real Estate Investment Trust

In the US, a publicly traded investment trust which invests the capital of its shareholders in real estates.

• Some REITs, called 'Equity Reits', take equity positions in real estate, receiving income from rents and capital growth from selling buildings.
• Others specialise in lending money to property developers, their income coming from interest payments on those loans.
• Hybrid REITS do a mixture of equity investing and property lending.

REITs enjoy special tax advantages provided 75% or more of their income comes from property and 95% or more of their net earnings is distributed to shareholders annually.