Property Management

What is 'real estate investment trust' (REIT) and how do some Hawaii properties fit into REITs?

AA. A type of cooperative housing arrangement in Hawaii
BB. A publicly traded company that owns income-producing real estate, allowing investors to buy shares in portfolios of Hawaii properties like hotels, shopping centers, or apartments without directly owning them✓ Correct
CC. A Hawaii state program investing pension funds in real estate
DD. A trust holding Native Hawaiian homestead lands for future generations

Explanation

A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-producing real estate. REITs must distribute at least 90% of taxable income to shareholders as dividends. Many significant Hawaii properties are owned by REITs—major Waikiki hotels, shopping centers, and apartment complexes may be REIT assets. REITs enable small investors to participate in large Hawaii commercial real estate.

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