City Center in california

REITs, or real estate investment trusts, are real estate companies that own or finance income-producing real estate across a range of property sectors, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure, and hotels. Most REITs focus on a particular property type, but some hold multiples types of properties in their portfolios.

In total, REITs of all types collectively own more than $3 trillion in gross assets across the U.S., with stock-exchange listed REITs owning approximately $2 trillion in assets, representing more than 520,000 properties. U.S. listed REITs have an equity market capitalization of more than $1 trillion

REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). Approximately 87 million Americans invest in REIT stocks through their 401(k) and other investment funds.

Most REITs operate along a straightforward and easily understandable business model: By leasing space and collecting rent on its real estate, the company generates income which is then paid out to shareholders in the form of dividends. Mortgage REITs (mREITS) provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments. 

Most REITs trade on major stock exchanges, and they have historically offered investors a number of benefits, including: competitive long-term performance; substantial, stable dividend yields; liquidity; transparency; and portfolio diversification.