What is a "real estate investment trust" (REIT)?

A "real estate investment trust" (REIT) is primarily defined as a company that owns and operates income-producing real estate. This structure allows individual investors to earn a share of the income produced through commercial real estate ownership without having to buy, manage, or finance any properties themselves.

REITs typically invest in a diversified portfolio of real estate assets, which can include residential buildings, office space, shopping malls, hotels, and healthcare facilities, among others. By pooling capital from numerous investors, a REIT can acquire, manage, and develop properties that generate revenue. This structure not only enables investment in large real estate projects but also provides a way for individuals to benefit from real estate investment in a more manageable and liquid form.

The other options do not accurately describe a REIT. A government organization that manages public land pertains to public land management and does not involve investing in income-producing properties. A company that primarily invests in stocks and bonds is an investment firm or a mutual fund, which is distinctly different from real estate investments. A partnership between real estate agents and developers could exist but is not the definition of a REIT and does not encompass the broader purpose of owning and operating real estate for income generation.