Definition
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs allow investors to invest in portfolios of real estate assets without directly buying property. To qualify, REITs must distribute at least 90% of taxable income as dividends, making them popular income investments. Types include equity REITs (own properties), mortgage REITs (finance properties), and hybrid REITs. REITs trade on exchanges like stocks but are sensitive to interest rates and offer real estate diversification benefits.
Formula
Example
A retail REIT owning shopping malls collects rent from tenants and distributes most of it as dividends. When interest rates rise, REIT prices often fall as their yields become less attractive relative to bonds.
FAQ
What is REIT?
A company that owns, operates, or finances income-producing real estate.
How do you calculate REIT?
A common formula for REIT is: REIT营运资金(FFO) = 净收入 + 折旧 - 物业销售收益
Why is REIT important?
REIT helps investors evaluate industry terms and make more informed decisions.