What is REIT?

A real estate investment trust, or REIT, is a company that owns, operates or finances income-producing real estate.

Types of REITs

Most REITs are traded on major stock exchanges, but there are also public non-listed and private REITs. The two main types of REITs are equity REITs and mortgage REITs commonly known as mREITs.

• Equity REITs – a company that owns or operates income-producing real estate.
• Mortgage REITs – mREITs provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.
• Public Non-listed REITs – PNLRs are registered with the SEC but do not trade on national stock exchanges.
• Private REITs – Private REITs are offerings that are exempt from SEC registration and whose shares do not trade on national stock exchanges.

Benefits of REITs status