Business and Personal Finance Dictionary

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• REAL ESTATE INVESTMENT TRUST (REIT)
  
  REITs are publicly traded trusts or associations that pool investors' capital to invest in a variety of real estate ventures, such as apartment and office buildings, shopping centers, medical facilities, industrial buildings, and hotels. After a REIT has raised its investment capital, it trades on a stock market just as a closed-end mutual fund does. There are three types of REITs: Equity REITs buy properties that produce income. Mortgage REITs invest in real estate loans. Hybrid REITs usually make both types of investments. All three are income-producing investments, and most of a REIT's annual income is distributed to investors. That means the yields on REITs are often higher than on other equity investments.
  
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