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In essence, when you invest in a REIT, you’re
investing in the properties managed by that REIT. This means that you become part-owner of those shopping malls, business parks, or whatever it is the REIT manages.
Whatever the properties earn in rental income, some of that money is paid to you in dividends. The reason why REITs are effective as a passive income generator is because they are required to pay out 90% of their rental profit...