What is a REIT?
A real estate investment trust (REIT) is one way to invest in property without becoming a landlord. Learn how REITs work in Canada.
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A real estate investment trust (REIT) is one way to invest in property without becoming a landlord. Learn how REITs work in Canada.
A real estate investment trust (REIT) is a company that owns income-generating real estate. REITs pool investor capital and invest in commercial real estate, such as apartment buildings, shopping malls, hospitals, warehouses, hotels, office buildings and even cell towers. REITs allow investors to earn dividend income by investing in real estate without having to take on landlord or management responsibilities.
Publicly traded REITs are considered very liquid investments. REIT ETFs are a type of exchange-traded fund (ETF) that holds REITs. There are also privately traded REITs, which are usually only available to accredited and institutional investors and do not have to meet the same disclosure requirements as publicly traded REITs.
Example: “I want to invest in real estate, but since I don’t want to be a landlord, I’m going to invest in REITs.”
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