Understanding REITs: A Foundation for Smart Investing

Real Estate Investment Trusts, or REITs, are companies that own or finance income-producing real estate. They’re a unique investment vehicle because they’re required to distribute a significant portion of their taxable income to shareholders as dividends. This makes them attractive to investors seeking regular income streams, often exceeding the yields of traditional bonds. However, like any investment, it’s crucial to understand the nuances before diving in. Different REITs specialize in various property sectors, each carrying its own level of risk and reward. Understanding these differences is key to building a diversified and successful