A REIT — real estate investment trust — is a listed company that owns and rents out property. In the UK it pays no corporation tax on its property rental profits, on condition that it pays out at least 90% of them to shareholders as a property income distribution, or PID. Its income depends on occupancy and rents, and its NAV is the value of its properties minus its debt.
A PID is taxed as property income, not as a dividend. For most individuals, basic-rate tax is taken off before it's paid, and the dividend allowance doesn't apply; inside an ISA or pension it's paid in full. The app treats a REIT like any share and records the declared amount per share, so outside an ISA or pension the cash you receive may be less than it shows. The risks are property's own: empty space, falling rents, valuations that drop when interest rates rise, and debt that has to be refinanced.
The minimum a UK REIT must pay out of its tax-exempt property rental profits.
Educational content only. It is not personal financial advice.