REIT
A company that owns or finances income-producing real estate and is traded like a stock or held privately. REITs must pay out most of their taxable income as dividends.
Also called: real estate investment trust, REITs
Related terms
A deal where a sponsor pools money from many investors to buy a larger property. Investors are usually passive, and these offerings fall under securities law.
Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.
A building with two or more separate housing units. Properties with two to four units can use residential loans; five or more are usually financed as commercial.
The total gain on an investment compared with what it cost, usually as a percentage. For real estate it can include cash flow, appreciation, loan paydown and tax effects.