Understanding REITs: Features and Benefits

Real Estate Investment Trusts (REITs) have become a popular alternative investment option for many investors. These companies own, operate, or finance income-producing real estate across a range of property sectors. Since their establishment, REITs have provided significantly higher returns compared to traditional equities and bonds over the long term.

Please discuss the key features and benefits of investing in REITs. In your answer, include a brief explanation of how REITs operate, their typical structures, and the advantages they provide for individual investors looking to diversify their portfolios.