A real estate investment trust (REIT) is specifically defined as a corporation that owns or finances income-producing real estate. This unique structure allows investors to pool their capital and invest in large-scale, income-generating properties, such as shopping malls, office buildings, apartments, and hotels.
The core purpose of a REIT is to provide a way for individuals to invest in real estate without having to buy, manage, or finance properties themselves. By investing in a REIT, shareholders gain the benefits of real estate investments, such as rental income and capital appreciation, without the direct challenges associated with property management.
In contrast, while a company that operates rental businesses does involve real estate, it does not encompass the investment structure characteristic of a REIT. Similarly, organizations that provide real estate education or platforms for buying and selling properties focus on different aspects of the real estate industry and do not align with the investment intent and structure of a REIT.