To invest in an REIT, what do you primarily purchase?

Investing in a Real Estate Investment Trust (REIT) primarily involves purchasing publicly traded shares of the company. By buying shares in a REIT, investors gain exposure to a diversified portfolio of real estate assets without directly owning or managing the properties themselves. This structure allows investors to benefit from the income generated by the properties within the REIT as well as any potential appreciation in share value.

REITs operate under a specific regulatory framework that requires them to distribute at least 90% of their taxable income to shareholders in the form of dividends. This makes them an attractive option for investors seeking income-generating investments. Furthermore, because many REITs are publicly traded, they are easily bought and sold on stock exchanges, providing liquidity that is not typically available with direct real estate investments.

While other options may relate to different types of investments in the real estate sector, purchasing equity in a private firm does not directly pertain to REITs, and debt instruments typically refer to bonds or loans rather than equity ownership. Lastly, owning real estate personally falls outside the realm of REIT investment. Therefore, the primary method of investing in a REIT is through publicly traded shares.