It is said in the curriculum that REITs shareholders receive rental income and income from capital appreciation if the property is sold for a gain. I had a thought that since REITs are exchange-traded, shareholders receive dividends and the capital appreciation comes from the appreciation of the stock (REIT). What did I miss?
for REITs it’s a little different because how they are taxed. they allocate the dividend distribution between ordinary income, return of capital, and capital gains. REITs will provide this information to you if you ask.
REITs have to distribute 90% of their taxable income. https://www.reit.com/news/videos/how-do-reits-work
Thanks for clarification