REIT
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Join →What Is a REIT?
A REIT, or Real Estate Investment Trust, is a company or trust structure designed to own, operate, or finance income-producing real estate or related assets, subject to the rules of the jurisdiction in which it operates.
Publicly traded REITs can be bought and sold on exchanges much like shares. This gives market participants a way to obtain listed exposure to real estate without directly purchasing and managing a property themselves.
What Can Affect a REIT?
REIT prices can respond to property values and rents, occupancy, financing costs, interest rates, economic conditions, sector-specific demand, and investor expectations. Different REITs can have very different exposures, such as offices, residential property, logistics, healthcare, or data centres.
Because REITs combine characteristics of listed equities and real-estate businesses, we should analyze both their market behavior and the underlying property-related economics.
Key Terms
REIT, real estate, property, rent, occupancy, interest rates, dividend, listed equity.
Knowledge Check
- What does REIT stand for?
- How can a listed REIT provide real-estate exposure?
- Name two factors that can affect a REIT’s market price.
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