Although they trade like regular stocks, REITs are a special type of corporation. They dont have to pay federal income taxes if they distribute at least 90% of their taxable income to shareholders. Thats why many REITs pay high dividends, often equating to 4% to 6% annual yields. As you probably know, dividend yields are analogous to the interest rate on a savings account. However, unlike savings accounts, your principal is not insured and you could lose money if the market drops.
http://www.winninginvesting.com/find_hot_REITS.htm
Many investors invest in REITs for their high yields. Since the companies are mostly tax exempt and are obligated to pay out the vast majority of their earnings in dividends, REIT yields are typically much higher than other types of stocks (averaging about an 8% annual yield for a 15-year investment).
http://www.dividend.com/dividend-education/the-definitive-guide-to-reits-real-estate-investment-trusts/
Accordingly, any company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate taxable income. But more often, most REITs remit at least 100 percent of their taxable income to their shareholders and therefore owe no corporate tax. In a previous Seeking Alpha article I explained the value proposition (for REITs): It's not hard to see why investors are attracted to the idea of high-dividend-paying stocks.
https://seekingalpha.com/article/1261901-reit-dividends-are-like-snowballs-all-you-need-is-wet-snow-and-a-long-hill
Most REITS pay out at least 100 percent of their taxable income to their shareholders. The shareholders of a REIT are responsible for paying taxes on the dividends and any capital gains they receive in connection with their investment in the REIT. Dividends paid by REITs generally are treated as ordinary income and are not entitled to the reduced tax rates on other types of corporate dividends.
https://www.investor.gov/introduction-investing/basics/investment-products/real-estate-investment-trusts-reits
REIT Dividends Are Like Snowballs: All You Need Is Wet Snow And A Long Hill. Last week fellow Seeking Alpha writer David Van Knapp and I were both quick to defend dividends from a ridiculous article that was meant to derail the all important dividends paid by real estate investment trusts (REITs).
https://seekingalpha.com/article/1261901-reit-dividends-are-like-snowballs-all-you-need-is-wet-snow-and-a-long-hill
For federal tax purposes, REITs are taxed as corporations, which means that they are taxed first at the entity level and then at the shareholder level. However, REITs function as hybrid entities in that they are taxed as passthrough entities as long as they comply with the requirements to maintain their REIT status.
https://www.forbes.com/sites/taxanalysts/2015/06/12/are-reits-paying-their-fair-share-to-states/
How to buy and sell REITs. You can invest in a publicly traded REIT, which is listed on a major stock exchange, by purchasing shares through a broker. You can purchase shares of a non-traded REIT through a broker that participates in the non-traded REIT’s offering.
https://www.investor.gov/introduction-investing/basics/investment-products/real-estate-investment-trusts-reits
REIT dividend payments are taxable to the shareholder as ordinary income. Under IRC section 243(d)(3), dividends issued by a REIT to shareholders are not considered a dividend for federal income tax purposes.
https://www.forbes.com/sites/taxanalysts/2015/06/12/are-reits-paying-their-fair-share-to-states/
NAREIT reported that 20 REITs have invested approximately $6 billion in commercial real estate in Hawaii. Those 20 REITs paid property and excise taxes, and Hawaii shareholders of those REITs paid income tax on REIT dividends, all beneficial the state.
https://www.forbes.com/sites/taxanalysts/2015/06/12/are-reits-paying-their-fair-share-to-states/
Real Estate Investment Trusts (REITs) are often described as instruments that offer investors the opportunity to invest in a professionally managed portfolio of real estate, through the purchase of a publicly-traded investment product. Individuals invest in a REIT by purchasing units of the trust, similar to shares of a common stock. The investment objective of REITs is to provide unit holders with dividend income, usually from rental income, and capital gains from the profitable sale of real estate assets.
http://www.moneysense.gov.sg/Understanding-Financial-Products/Investments/Types-of-Investments/Real-Estate-Investment-Trusts.aspx
how frequently reit dividends are paid
 REIT paid dividends are 4 to 6 percentage. REIT dividends are paid at between 4 percentage and 6 percentage.