GLOSSARY · BLOCKCHAIN & WEB3
REIT (Real Estate Investment Trust)
What a REIT is: the listed real estate investment vehicle, how it works, its Spanish version (the SOCIMI) and how it differs from tokenization.
WHAT IS IT? · FOR DUMMIES
A REIT (Real Estate Investment Trust) is a company that owns rental property, is listed on a stock market and distributes almost all of its profit as dividends, with tax advantages. It was born in the US and is the global standard for liquid real estate investment; its Spanish version is the SOCIMI.
WHAT IS IT? · PRO
The REIT bargain is the same everywhere: the vehicle pays little tax in exchange for distributing most of its profit (in the US, at least 90%), and the shareholder pays tax on the dividend. That makes it an income machine: diversified, liquid real estate exposure with listed-market governance.
The comparison with real estate tokenization is the same as for the SOCIMI: the REIT gives you a diversified portfolio and stock-market liquidity; the token gives you a specific asset, a small ticket and modern settlement — the full analysis in SOCIMI vs tokenization and in the ways to invest in real estate. And the boundary is blurring: tokenized REITs and listed funds whose register migrates to DLT already exist.
01 / Key points
- Listed company of rental property with mandatory dividends
- The vehicle pays little tax; the shareholder pays tax on the dividend
- Spanish version: the SOCIMI (Law 11/2009)
- Versus the token: diversified portfolio and exchange vs specific asset and small ticket
02 / Advantages
- Immediate liquidity and diversification
- Periodic income by design
- Global standard with variants in dozens of countries
03 / Disadvantages
- Correlated with the stock market: it trades like a share
- No control over the asset: you buy the whole management
- Sensitive to interest rates