A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. Similar in structure to mutual funds, REITs offer investors—both individual and institutional—the opportunity to earn regular income, benefit from portfolio diversification, and achieve long-term capital appreciation.
REITs enable individuals to invest in a diversified portfolio of real estate assets in much the same way one would purchase shares of a company. This investment structure allows investors to participate in the real estate market without the need to directly purchase or manage property.
A REIT raises capital by pooling funds from a broad base of investors and then uses this capital to acquire and manage real estate assets. The income generated—typically through rent or the sale of properties—is distributed among the unit holders in proportion to their investment, offering a passive and professionally managed way to benefit from the real estate sector.
