REIT stocks
Choose from over 160 real estate investment trusts (REITs) to invest in, commission-free on the Freetrade app.
When you invest, your capital is at risk. Other charges may apply. See our full pricing table.
What is a REIT?
REITs or real estate investment trusts are companies that own or operate income-producing real estate, such as retail buildings, warehouses, apartments, data centres, infrastructure or hotels. A REIT can focus on one type of real estate property or cover a mix of properties in their portfolio.
This type of investment asset can provide retail investors with a great way to diversify their portfolios and invest in residential or commercial real estate without the hassle of buying and managing the properties themselves.
Advantages
They can provide regular dividend income. REITs have to pay out 90% of their profits in the form of dividends to their investors.
Due to their lower correlation with the rest of the equity market, they can help diversify your portfolio.
They are a much more liquid investment compared to investing directly in property.
REITs have the potential to provide total return on investment.
Disadvantages
Like any other stock market investments their value can go down as well as up.
They can be massively impacted by real estate prices, which also tend to be correlated with the health of the economy.
Even if REITs are exempt from corporate income tax, investors still need to pay tax on dividends, if they are not kept in a tax wrapper.
Not suited for short term investment. REITs prices can be influenced by many factors over the short term, interest rates being one of these factors.
Why invest with Freetrade
Commission-free investing
Over one million users
Over 6,000 stocks and ETFs to invest in
Other charges may apply. See full pricing table here.
Types of REITs available to invest in
List of REITs on Freetrade
Simple pricing plans
Accounts
Benefits
- Commission-free trades (other charges may apply. See full pricing table.)
- Fractional US Shares
- Access to more than 1,500 stocks, including the most popular shares and ETFs
Accounts
Benefits
Everything in Basic, plus:
- Full range of over 6,000 US, UK and EU stocks and ETFs
- Automated order types
- Advanced stock fundamentals
- 1% on uninvested cash, up to a maximum of £2,000
Accounts
Benefits
Everything in Standard, plus:
- 3% on uninvested cash, up to a maximum of £4,000
- Priority customer service
- Freetrade Web beta
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