REIT — What Is It? Real Estate Investing Through the Stock Exchange

Definition

REIT (Real Estate Investment Trust) is a company or fund that owns, manages, or finances income-producing real estate. REITs are listed on stock exchanges, enabling real estate investment without the need to purchase physical buildings.

How do REITs work?

A REIT collects capital from investors and uses this money to buy or build real estate — office buildings, shopping centers, warehouses, rental apartments, hotels, or hospitals. Income from rents and property sales is then paid to investors in the form of dividends.

Key feature: REITs must pay out at least 90% of profits as dividends, making them attractive for investors seeking regular income.

Types of REITs

• Equity REIT — owns and manages properties (most popular)
• Mortgage REIT — invests in mortgages and debt securities backed by real estate
• Hybrid REIT — combines both approaches

Advantages of REITs

• Accessibility — you can invest from a few dozen PLN (by buying REIT ETF units)
• Liquidity — you buy and sell on the exchange, unlike physical real estate
• High dividends — obligation to pay out 90% of profits
• Diversification — exposure to real estate market without buying an apartment
• Professional management — specialists handle the properties

REITs and Polish investors

In Poland, the REIT law (FINN — Companies Investing in Real Estate Rental) has been in the project phase for years. However, Polish investors can invest in foreign REITs through:

• REIT ETFs — e.g., iShares Global REIT ETF, available through foreign brokerage accounts
• Direct purchase — shares of individual REITs on foreign exchanges (e.g., through XTB)

How Freenance can help

Freenance allows you to add REITs to your portfolio and track their value and dividends. You can see what portion of your portfolio consists of real estate and how it affects overall asset allocation.

👉 Add REITs to your portfolio — freenance.io