What is a REIT and how does it work?

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs allow individual investors to earn dividends from real estate investments without having to buy, manage, or finance properties themselves.

How do REITs pay dividends?

REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends. This makes them attractive for income-seeking investors, as they typically offer higher dividend yields than many other equities.

What are the risks of investing in REITs?

REIT risks include interest rate sensitivity (rising rates can reduce REIT values), market volatility, sector-specific risks (e.g., retail or office vacancies), leverage risk from debt financing, and liquidity risk for non-traded REITs.

Best REITs & Real Estate Investments 2026

Reviewed by Thomas & Øyvind — NorwegianSpark · Last updated: April 2025

Invest in real estate through REITs and REIT ETFs. Access commercial properties, apartments, warehouses, and more with lower minimums.

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Understanding REITs

•What is a REIT: A company that owns and manages income-producing real estate
•Dividend Income: REITs must distribute 90% of taxable income to shareholders
•Diversification: Access multiple property types and geographic regions
•Liquidity: Easily buy and sell shares like stocks

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Best REITs & Real Estate Investments 2026

Understanding REITs

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Best REITs & Real Estate Investments 2026

Understanding REITs