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 West Virginia, 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. The benefit of qualifying as a REIT is that the company is allowed to deduct dividends paid to its shareholders from its corporate taxable income, effectively avoiding double taxation. At the state level, West Virginia does not have specific statutes that uniquely regulate REITs; they are treated like other corporations for state tax purposes. However, they must comply with general corporate laws and securities regulations when offering their shares to the public. Investors in West Virginia can invest in REITs to gain exposure to real estate markets without directly owning property, and they typically earn income through dividends and potential appreciation of the REIT's shares.