Real estate investment trusts (“REITs”) allow individuals to invest in large-scale, income-producing real estate. A REIT is a company that owns and typically operates income-producing real estate or related assets. These may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans.

Unlike other real estate companies, a REIT does not develop real estate properties to resell them. Instead, a REIT buys and develops properties primarily to operate them as part of its own investment portfolio.

In Nebraska, Real Estate Investment Trusts (REITs) are governed by both state statutes and federal law. REITs are designed to 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 themselves. Nebraska adheres to the federal regulations set forth by the Internal Revenue Code, which requires REITs to meet certain criteria such as investing at least 75% of total assets in real estate, deriving at least 75% of gross income from rents or mortgage interest, and distributing at least 90% of taxable income to shareholders annually in the form of dividends. Additionally, REITs must be structured as a corporation, business trust, or similar association and be managed by a board of directors or trustees. The Nebraska Department of Revenue oversees the taxation aspects of REITs within the state, ensuring compliance with both state and federal tax requirements. It's important for investors to consult with an attorney or tax advisor to understand the specific implications of investing in REITs, including the potential tax benefits and obligations.