REIT (Real Estate Investment Trust)

A REIT is a company that owns, operates, or finances income-producing real estate — apartments, warehouses, malls, data centers, or cell towers. By law, REITs must distribute at least 90% of taxable income to shareholders as dividends, which is why they typically offer much higher yields than ordinary stocks (often 3–8%). REIT dividends are usually taxed as ordinary income rather than at qualified dividend rates.