Real estate investment trust (REIT) is an investment company that owns and manages apartments, offices, hotels, shopping centers, and other types of real estate. REIT’s, sometimes called real estate stocks, may also provide money for real estate projects. At least 90 percent of the income generated by a REIT must be distributed among investors who own shares in the trust. Shares in many REIT’s are publicly traded on stock exchanges.
The United States Congress created REIT’s in 1960. They were introduced as a way to make investments in major real estate projects affordable for smaller investors. The REIT industry became increasingly popular during the 1990’s and early 2000’s.
