1. A REIT pools income-producing real estate
Investors buy units in a trust that owns or finances qualifying real-estate assets under the applicable framework.
Tip: You own REIT units, not a specific office cabin.
2. Returns can come from distributions and unit-price movement
Rental/asset income can support distributions while market prices move with interest rates, property outlook and investor demand.
Tip: REIT distributions are not guaranteed like a bank deposit.
3. REITs improve liquidity and diversification relative to one property
Listed units can be bought and sold more easily than a whole building and provide access to a portfolio of properties.
Tip: Market liquidity is better, but unit prices can be volatile.
4. REITs still carry real-estate and market risk
Occupancy, rent renewals, interest rates, leverage, asset quality and valuation all matter.
Note: REIT is not a risk-free substitute for FD.
5. Quick check
What do you own when you buy a listed REIT?
Answer: B - REIT investors own units in the trust, not direct title to one property.