The ABCs of REITs
August 28, 2017 | Kelly Andiorio, Neil Furmanski | Rsmus.com
A real estate investment trust (REIT) is a complex entity designed to provide all investors the opportunity to invest in commercial real estate in a tax efficient manner. REITs have become a popular investment vehicle around the world.
The REIT industry has a diverse profile and can be broadly grouped into two categories:
- Equity REITs predominantly own and operate real estate
- Mortgage REITs generally lend money directly to real estate owners and operators
While REITs differentiate themselves through various characteristics, all REITs must follow the same regulations under federal tax law.