Real estate investing, without buying the building.

A real estate investment trust, or REIT, owns income-producing property or real-estate-related assets. The SEC’s investor bulletin describes portfolios ranging from apartments and offices to industrial buildings and mortgage assets. Buying a REIT is different from buying and managing an individual property.

Publicly traded REIT shares trade on exchanges and have observable market prices. Non-traded REITs do not trade on those exchanges, and access to an exit can be restricted. Private REITs are another category, with different disclosure and eligibility considerations.

Before evaluating an investment, identify the structure, the property exposure, fees and how shares can be sold. A familiar property type does not remove investment risk. The SEC also notes interest-rate sensitivity and potential conflicts involving external management.

The editorial takeaway is to begin with the documents, not a promised return. For a publicly traded REIT, review its filings and risk factors alongside the headline. This U.S.-focused explainer is educational and does not recommend a particular security or investment allocation.