REITs

A real estate investment trust (REIT) is created when a corporation (or trust) uses investor funds to buy and operate income-producing assets. REIT buys and sells on the main stock exchanges, just like any stock.

The Company is required to pay 90% of its taxable profits in the form of dividends in order to maintain its position as a real estate investment trust.

In doing so, REITs avoid paying corporate income taxes, while ordinary corporations tax their profits and then decide whether or not to distribute their after-tax profits as dividends. Like ordinary dividends, real estate investment trusts are a reliable investment for stock investors looking for fixed income.

Compared to real estate investments of the types above, real estate investment trusts allow investors to capture non-residential investments, such as shopping centers or office buildings, and have high liquidity.

In other words, you do not need a real estate agent to help you make the most of your investment.