What is a public REIT?

A public REIT is defined as a type of Real Estate Investment Trust that is registered with the Securities and Exchange Commission (SEC) and whose shares are publicly traded on stock exchanges. This registration ensures that the REIT adheres to specific regulatory requirements, providing a level of transparency and investor protection. By being publicly traded, these REITs allow a broader range of investors to buy and sell shares, thereby increasing liquidity and accessibility for those looking to invest in real estate without having to directly purchase properties.

In contrast, private offerings and select investors are characteristic of private REITs, which are not registered with the SEC and do not trade on public exchanges, thus limiting their investment pool. A focus on specific types of properties, such as residential, is not a defining characteristic of public REITs, as they can encompass various types of real estate, including retail, commercial, and industrial properties. Lastly, public REITs are subject to regulatory oversight, which is contrary to the notion of lacking formal regulatory measures, providing credibility and transparency to investors.