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The primary objective of real estate investment trusts (REITs) is to focus on properties generating income and distribute dividends. REITs are designed to provide a steady stream of income to their investors by investing in a diversified portfolio of real estate assets, such as commercial properties, residential buildings, or industrial facilities.

This income comes primarily from the rents collected from tenants occupying these properties. By law, a REIT must distribute at least 90% of its taxable income to shareholders in the form of dividends, which makes REITs an attractive investment option for those seeking regular income. This focus on generating and distributing income is a key characteristic of REITs, distinguishing them from other investment vehicles that might prioritize capital appreciation or speculative investments.

The approach of focusing on income-generating assets while ensuring the distribution of a significant portion of that income aligns with the expectations of investors who typically look for cash flow opportunities in real estate investments.