Real Estate Investment Trusts, or REITs, enable investors to invest in property through a company - called a REIT - that finances, owns, or operates real estate that generates income. REITs can include cell towers, data centres, commercial and residential property, such as warehouses, retail centres and malls. One of the world’s largest REITs, is ProLogis, which provides warehouses for companies that need shedloads of floor space, such as Amazon, Walmart and DHL.
REITs have special tax status in the US. Their status means they're exempt from paying corporate income tax but must pass on 90% of their profits as dividends to shareholders- some of these can be as high as a nearly 30% dividend yield. This means REITs can suit investors seeking to generate income while they hold shares over the long term. Historically, REITs have been one of the top asset classes in times of high inflation because over time, rents typically rise to help offset this increase. Learn more about REITs.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
Ready to Hatch your tomorrow?
Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.
