Real Estate Investment Trusts or REITs can be a corporation, business trust or association that acts as an investment agent that acquires or provides financing for the acquisition of real estate or real estate mortgages or even a combination of both.  It basically combines the capital of many investors to purchase any form of income producing real estate.  In most countries, REITs are often accorded special tax breaks where they are not required to pay any corporate income tax if it distributes the majority (usually 90% to 95%) of its taxable income to shareholders each year. Unlike property stocks, REITs is akin to holding personal property where the taxation of income takes place at the investor level rather than at the company level.  In certain countries, dividends or distributions are also not taxed.  So there is an added advantage for investors to own it. REITs are usually traded just ......