reits have the following six characteristics:

1. Different investment objects: reits can only invest in mature rent-collecting properties, but not in other industries or real estate development.

2. Compulsory dividends: reits are different from stocks, and listed companies may or may not pay dividends every year. But reits can't. Most of its income, with basic households accounting for more than 9%, must be distributed to investors in that year.

3. Liquidity: reits and stocks can be listed and traded, and ordinary investors can buy and sell freely on the exchange.

4. Specialization: In the development of commercial real estate, it is often the developer who has completed the whole industrial chain. After the introduction of reits, it is likely to promote the whole industry to form a professional division of labor.

5. Diversification: The requirement of reits is stable and safe income. In order to achieve this goal, reits will consider diversified investment to spread risks, and it will rationally allocate assets between different regions and different formats.

6. tax exemption: it depends on national policies, but according to international management, investors' investment income is tax-free. Reits are based on the cash flow income of commercial properties, and the whole commercial property is divided into equal income vouchers, which are called reits units, and then these REITs units are transferred to ordinary investors. These REITs units can be listed and circulated, just like stocks, and can be bought and sold freely on the stock exchange without restrictions.

what are REITs?

REITS refer to "real estate investment trust funds", which issue income certificates to investors, raise funds to invest in real estate, and distribute investment income to investors.