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 Oregon, as in other states, Real Estate Investment Trusts (REITs) are governed by federal tax law, specifically by the Internal Revenue Code (IRC). REITs must comply with certain IRS requirements to qualify as a REIT, such as investing at least 75% of total assets in real estate and deriving at least 75% of gross income from rents or mortgage interest. Oregon does not have specific statutes that separately govern the formation and operation of REITs; they are formed under general corporate or trust laws. REITs in Oregon must also comply with securities laws for the offering of their shares to the public, which involves registration and disclosure requirements. Additionally, REITs are subject to state taxation, and in Oregon, they must pay state corporate income taxes on their taxable income. It's important for investors to consult with an attorney or tax advisor to understand the specific implications of investing in REITs, including the state-specific regulations that may affect their investments.