# Real Estate Investment Trust (REIT)

*Real Estate — Finicade finance glossary*

A REIT owns income-producing property and must distribute most of its taxable income to shareholders, which is what makes it exempt from corporate tax. That structure gives property exposure with stock-market liquidity and no landlord duties. Two consequences follow: dividends are usually taxed as ordinary income rather than at qualified rates, and REITs must keep raising capital to grow, since they can't retain earnings.

**Also known as:** REIT, REITs, property trust

**Related terms:** [Real Estate](https://finicade.com/glossary/real-estate), [Dividend Yield](https://finicade.com/glossary/dividend-yield), [Commercial Real Estate](https://finicade.com/glossary/commercial-real-estate), [Net Operating Income](https://finicade.com/glossary/net-operating-income), [Qualified Dividend](https://finicade.com/glossary/qualified-dividend)

Source: https://finicade.com/glossary/real-estate-investment-trust