What is meant by "REIT liquidity"?

"REIT liquidity" refers to the ease with which shares of a Real Estate Investment Trust (REIT) can be bought and sold in the financial markets. This concept is crucial for investors because it indicates how quickly they can enter or exit their investments in a REIT without significantly affecting its price. High liquidity usually means that there are many buyers and sellers in the market, which facilitates quick transactions at prices close to the current market value.

In contrast, the other options touch on different aspects of a REIT's performance or characteristics but do not capture the essence of liquidity. The quality of the property held by a REIT involves the condition and value of real estate assets, while cash flow pertains to the income generated from those properties. The assets owned by a REIT refer to the tangible or intangible properties and entities in its portfolio. Each of these factors can influence an investor's overall assessment of a REIT, but none directly relate to the operational concept of liquidity as it pertains to the trading of REIT shares in the market.