What is a private REIT?

A private REIT is defined as one that does not publicly trade its shares and is not registered with the U.S. Securities and Exchange Commission (SEC). This characteristic sets private REITs apart from public REITs, which are subject to SEC regulations and trade on major stock exchanges.

Private REITs typically raise capital through private placements and are able to avoid some of the regulatory burdens that come with public registration. This allows them more flexibility in their operations and investment strategies, though it also means they might be less transparent to investors unfamiliar with their practices. Given that they don't trade publicly, shares in private REITs are often less liquid, which can appeal to certain investors looking for different types of portfolios and risk profiles.

The other options describe different types of REITs or characteristics that do not align with the definition of a private REIT. For instance, public REITs operate under specific regulations and trade on major exchanges, while options discussing specific investment focuses such as international investments or government securities do not define the structural characteristics of a private REIT.