Which of the following outcomes can a REIT achieve?

A Real Estate Investment Trust (REIT) is designed to provide a way for individuals to invest in large-scale, income-producing real estate without having to buy properties directly. One of the defining characteristics of a REIT is its obligation to distribute at least 90% of its taxable income to shareholders in the form of dividends.

The choice that accurately captures an achievable outcome for a REIT is paying consistent dividends to investors based on income-generating properties. This is a fundamental aspect of how REITs operate, as they typically own or finance income-producing real estate and then share the profits with their shareholders. This model not only incentivizes investment in the REIT but also reflects its function of pooling funds from various investors to purchase and manage large real estate assets.

While liquidity of investments is a factor, many investors can actually find that REITs provide a level of liquidity compared to direct real estate investments, which tend to be less liquid. Moreover, while some REITs might focus on international markets, it is not a requirement; many are diversified across various domestic and international portfolios. Additionally, REITs do not generally provide short-term loans to buyers without property, as their primary focus is on real estate investment and management rather than lending.