REIT
Business & Finance abbreviation · Real Estate & Mortgage
| Stands for | Real estate investment trust |
|---|---|
| Categories | Business & Finance |
REIT stands for Real estate investment trust, a real estate & mortgage abbreviation.
Company that owns or finances income-producing real estate, such as apartments, offices, warehouses, data centers or mortgages, and passes most of its income to shareholders as dividends, letting investors buy real estate exposure like a stock.
Example: I own a REIT index fund instead of buying rental property myself.
Usage notes
Congress created REITs in 1960. To avoid corporate income tax, a REIT must distribute at least 90% of its taxable income and keep at least 75% of its assets in real estate. Equity REITs own properties, while mortgage REITs hold real estate debt. Pronounced "reet." REIT dividends are mostly taxed as ordinary income, so many investors hold them in retirement accounts.
Related abbreviations
More real estate & mortgage abbreviations
- POA – Property owners association
- PSA – Purchase and sale agreement
- PSF – Per square foot
- PUD – Planned unit development
- QCD – Quitclaim deed
- QM – Qualified mortgage
- REO – Real estate owned
- ROFO – Right of first offer
- ROFR – Right of first refusal
- RSF – Rentable square feet
- SFR – Single-family residence
- SNDA – Subordination, non-disturbance and attornment agreement