Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate. They provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties. One of the key advantages of investing in REITs is the potential for earning dividends.

Consider the following statements about REITs. Which of the following is true regarding the structure and operation of REITs?