Real Estate Investment Trust
Abbreviation: REIT
Plain-English definition
A company that qualifies under rules for owning or financing real estate and distributing income to shareholders.
Why it matters
A REIT structure does not tell you whether the business owns buildings or finances loans, nor guarantee dividends.
Example
A hypothetical property-owning REIT collects rents; a mortgage REIT instead earns income from real-estate financing.
How income investors use it
Identify the business model, traded or non-traded structure, and company-specific measure supporting the dividend.
Fly High perspective
Fly High uses the earnings measure the company identifies as the source of its dividend and keeps that measure consistent across the coverage calculation.
This material is general education, not individualized investment, tax, or legal advice.