A REIT (real estate investment trust) is a company that owns, operates and finances income generating real estate. They usually trade in the stock market, providing liquidity and transparency to their investors.

REITs offer investors the possibility of owning income producing real estate through a diversified and simplified structure. By investing in REIT stocks investors can access high grade professionally managed real estate portfolios at a fraction of its cost, pooling capital for investment opportunities that would otherwise be only accessible to high net worth individuals and institutional investors.

Tax benefits: REITs count with tax benefits in both dividend distribution and share sales, significantly reducing holding costs for the investor.

Low entry barriers: Investors can obtain REIT shares with a smaller amount of capital, just like in the stock market.

Flexibility: By being liquid financial assets, REITs offer investors the possibility to liquidate their investment with relative ease.

Simplicity: REITs manage the assets in the portfolio, allowing the investor to focus on receiving dividends without any operational effort.

Diversification: By pooling capital from multiple investors, REITs obtain a diversification that is unachievable through conventional direct ownership.

Efficiency: REITs achieve lower costs through economies of scale derived from having an ample property portfolio.

Income producing real estate combines both stable dividend yields derived from rents and property appreciation on a yearly basis, translating into a total return with low volatility that performs better than fixed income.

With closures and quarantines real estate faced one of its greatest challenges in years, establishing a new reality that has proven its resilience and ability to adapt. Today, with vaccination rollouts and economic recovery real estate is seeing a quick upturn that investors can capitalize on by acquiring assets at discounted prices.