Real Estate Investment Trust (REIT)

A company that owns, and usually operates, income-producing real estate and pays no corporate tax on the income it distributes, provided it distributes most of it (in the US, at least 90% of taxable income) and meets tests on its assets and income. Because it pays out most of what it earns, it grows by raising new debt and equity, and it is valued on FFO, AFFO and net asset value rather than on earnings.