An essential characteristic of REITs is that they:

Real Estate Investment Trusts (REITs) are designed to provide investors with a way to earn income through real estate without the need to directly purchase or manage properties themselves. This characteristic is central to REITs, because they pool the capital of many investors to buy and manage real estate assets. As a result, investors can receive dividends that are derived from the rental income generated by these properties, along with any profits made from property sales, all without the complexities of direct property ownership.

REITs are structured to return a significant portion of their taxable income to shareholders, typically in the form of dividends. This provides a stream of income to investors, which is one of the primary appeals of investing in REITs. The diversification across multiple properties also helps mitigate risks associated with investing in individual real estate assets.

The other choices present different aspects of real estate and investments but do not capture the essence of REITs' primary function, which is to provide income-generating opportunities in real estate without investors having to buy properties themselves.