What does R.E.I.T stand for in real estate terms?

R.E.I.T stands for Real Estate Investment Trust. This is a company that owns, operates, or finances income-producing real estate across a range of property sectors. By pooling funds from multiple investors, a REIT enables individual investors to earn a share of the income generated through commercial real estate ownership without having to buy, manage, or finance any properties themselves.

Real Estate Investment Trusts are significant because they provide liquidity, diversification, and the potential for attractive returns to investors. They are typically traded on major stock exchanges, making it easier for investors to buy and sell their shares. Additionally, to qualify as a REIT, the entity must adhere to specific regulatory requirements, including distributing at least 90% of its taxable income to shareholders in the form of dividends.

In contrast, the other options do not accurately capture the meaning of R.E.I.T in the context of real estate.