A REIT (real estate investment trust) holds commercial real estate or real estate loans, distributing at least 90% of taxable income as dividends. Types include equity, mortgage, and hybrid REITs, with sectors like office, industrial, retail, residential, healthcare, and more. Benefits include high dividends, diversification, tax advantages, and liquidity. Drawbacks include tax liabilities, interest rate sensitivity, and property risks. Investors can buy publicly traded REITs for diversification and income.
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