What Is A Real Estate Investment Trust (REIT)?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

A Real Estate Investment Trust (REIT) is a security that trades like any asset on an exchange, similar to an ETF. A REIT pools the funds of investors and then invests it into real estate via mortgages or properties.

There are 3 main kinds of REIT:

  • Mortgage - loaning money for mortgage purposes and receiving the interest payments
  • Equity - investing in actual properties and owning a stake in them and receiving money either from rent or from resale
  • Hybrid - combination of Equity and Mortgage

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.