What is a REIT?

A REIT (short for Real Estate Investment Trust) is a publicly traded organization and although REITs are based on real estate, they are nothing like traditional property ownership.

 A REIT is much like a specialized mutual fund that may invest in any of a wide variety of companies that own, and in most cases, operates income-producing real estate.

REITs give the average investor a chance to own small slices of shopping centres, condos, office buildings, housing developments, hospitals, student housing, parking garages and all sorts of other real estate.

REITs can be publicly traded on major exchanges, public but non-listed or private. Common REITs in Canada include RioCan, InnVest and H&R Real Estate Investment Trust.  A complete list of Canadian REITs are listed here.