Real Estate Investment Trust (REIT)
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. Publicly-traded REITs trade on stock exchanges like any other equity; non-traded and private REITs also exist. To qualify as a REIT under U.S. tax law, the entity must distribute at least 90% of taxable income as dividends to shareholders.
REITs offer real estate exposure (and the inflation-hedge characteristics) without direct property ownership, tenant management, or financing. Trade-off: less control, less leverage, and dividend income is taxed as ordinary (not capital gains).
Why it matters for Milo customers
Milo customers occasionally hold REIT positions as a complement to direct real estate ownership financed through Milo. The combination — owning property directly via Milo crypto-backed mortgage + holding REIT diversification — gives both control and broad market exposure.