REIT
noun
ukusSTOCK MARKET,FINANCE,PROPERTY,TAX
abbreviationforReal Estate Investment Trust: in the US, acompanythatinvestsinpropertyorpropertyloans, andsellssharesin thoseinvestmentsin asimilarway to amutualfund. REITs are used toavoidincometaxor toreducetheamountthat has to bepaid:
BylawREITs mustpasson totheirshareholders90% oftheirtaxableincome.
REITspresentslightlydifferentrisksto thoseassociatedwithinvestingin therealestateindustryingeneral.
REITsharesoften take ahitwheninterestratesgohigher.