REITnoun
ukusSTOCK MARKET, FINANCE, PROPERTY, TAX abbreviation for Real Estate Investment Trust: in the US, a company that invests in property or property loans, and sells shares in those investments in a similar way to a mutual fund. REITs are used to avoid income tax or to reduce the amount that has to be paid:
By law REITs must pass on to their shareholders 90% of their taxable income.
REITs present slightly different risks to those associated with investing in the real estate industry in general.
REIT shares often take a hit when interest rates go higher.