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What Is a REIT?
By Seedly  •  January 20, 2020

Have you come across the acronym “REIT”, but have always wondered what it means?

You are not alone.

That’s why this series is here to demystify investing terms for beginners like you.

So, what exactly is a REIT?

Source: giphy

REIT simply means Real Estate Investment Trust.

A REIT pools money from investors to invest in a portfolio of income-generating real estate assets.

These assets can be shopping malls, offices, industrial buildings, hotels, or even data centres.

In exchange for your investment in a REIT, you are entitled to distributions at regular intervals, usually on a quarterly basis.

REITs are professionally managed and in turn for their effort, the managers receive fees such as REIT management fees and property management fees.

REITs trade just like stocks on the stock market. Therefore, REITs allow investors to gain exposure to the property market without a huge capital outlay. 

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By Seedly
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
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