A real estate investment trust, or REIT, is an association, or trust, that owns and manages income properties (such as shopping malls, apartment buildings, hotels, etc.), mortgages, and/or loans. REITs are highly liquid, can be traded like stocks on major exchanges, and provide high yields to shareholders. These trusts must operate according to the requirements of the Real Estate Investment Trust Act of 1960, which grants them exemption from paying corporate income tax and capital gains taxes.