What is a Publicly Traded REIT?

A Publicly Traded REIT is one that is listed on a major stock exchange, allowing its shares to be bought and sold in the same manner as stocks. This structure provides liquidity to investors, enabling them to easily enter or exit their investments. Investors can purchase shares of these REITs through brokerage accounts, which can also lead to greater visibility and public awareness of the REIT's performance and strategy.

This distinction is significant because it contrasts with privately held REITs, which do not trade on public exchanges and are typically available only to institutional or accredited investors. Additionally, while some publicly traded REITs may focus on commercial properties, the defining feature of a Publicly Traded REIT is its trading status rather than its real estate investment type. Therefore, being listed on a major stock exchange is what clearly characterizes a Publicly Traded REIT.