What is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing properties. By pooling money from multiple investors, REITs provide access to a diversified portfolio of real estate assets. In Ghana, REITs are required to distribute at least 80% of their taxable income as dividends, giving investors steady income along with the potential for long-term capital growth.

How does REIT investing work?
REIT investing works much like mutual funds: capital from many investors is combined and professionally managed. This allows individuals to benefit from real estate income and appreciation without the need to directly buy, manage, or finance properties themselves.

Why consider REITs?

• Consistent dividend income plus long-term appreciation.

• Portfolio diversification with lower correlation to other assets.

• Access to large-scale real estate opportunities typically beyond the reach of individual investors.

The Bottom Line
REITs offer a practical way to invest in real estate, providing income, diversification, and long-term growth potential. They are designed for investors who want exposure to property markets without the complexities of direct ownership.