Definition for : Real Estate Investment Trust
Designate in the USA "trusts" which are formed to pool funds from a large number of Investors in order to acquire a significant portfolio of real estate properties and/or Interest in mortgage-backed securities/loans. The REITs are listed and traded on a Stock Exchange and benefit from a favourable tax treatment. They distribute dividends which come from the rents paid by tenants and - as the case may be - (non-reinvested) gains on the sale of the propertihe Inflation-adjusted Return on invested funds. It can be calculated using the Fisher formula.
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