What is a Real Estate Investment Trust?

What is a Real Estate Investment Trust?

by Richard C. Wilson & Family Offices Group Association Team

Question:  What is a Real Estate Investment Trust?

Answer: One way in which family offices invest in real estate is through what is known as a Real Estate Investment Trust or REIT fund. A real estate investment trust (REIT) is an investment security that invests in property or mortgages and has an income component.

REIT’s trade on the securities exchange like a stock, making them an easily accessible and liquid avenue for investing in real estate. REIT’s must pass through a significant portion of their income as a dividend in order to qualify for special tax treatment. Publicly available REIT’s normally invest in commercial real estate, such as apartments, hotels, shopping malls, office complexes, and storage units. REIT’s are a way to invest in real estate without directly investing in private real estate and managing property.

Download our free Family Office Report to learn more about the family office industry.

Read more Frequently Asked Family Office Questions.

Leave Your Response

* Name, Email, Comment are Required

We run the Family Offices Group, the #1 largest family office association with 84,000+ global members. We offer live events, a bestselling book, Webinars, a family office database, and a family office training & certificate program called the Qualified Family Office Professional (QFOP). To get to know us please watch this 2 minute video, and contact us any time during pacific business hours by calling (212) 729-5067 or emailing us at Clients@FamilyOfficesGroup.com.

Free Family Office Report (PDF)

Contact Details for 1,000 Family Offices in Excel