05.07.2009

REIT is a real estate company that offers common shares to the public. In this way, an REIT stock is similar to any other stock that represents ownership in an operating business. But an REIT has two unique features: its primary business is managing groups of income-producing properties and it must distribute most of its profits as dividends

Method developed first in the UK which provides a way of funding major capital investment, often large infrastructure projects, without having recourse to the public purse. Private consortia are contracted to design, build, and in some cases manage new projects. Contracts typically last for 30 years.