What is the primary purpose of a REIT?

The primary purpose of a Real Estate Investment Trust (REIT) is to provide a means for individual investors to earn a share of the income produced through commercial real estate ownership. REITs operate by pooling the capital of many investors to purchase and manage a portfolio of income-producing properties such as shopping malls, office buildings, apartments, and hotels.

This structure allows individual investors to benefit from real estate investments without needing to buy or manage properties directly. Investors can invest in a REIT just like they would in a stock, gaining exposure to real estate markets and the ability to earn dividends and appreciate in value over time.

The other options present specific aspects that may relate to real estate but do not capture the essence of what a REIT does. While developing commercial real estate projects may be a function of some companies or developer entities, it is not the primary purpose of a REIT. Similarly, managing residential leases is too narrow, as REITs typically focus on various types of properties, not just residential. Lastly, creating government housing programs is outside the scope of a REIT's function, as REITs are primarily focused on generating profit for their investors rather than serving as a government entity for housing solutions. Thus, the correct answer highlights the