REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without actually buying, managing, or financing any properties themselves. They typically operate by pooling funds from multiple investors to purchase or develop real estate properties. The income generated from these investments, primarily through leasing space and collecting rents, is then distributed to shareholders in the form of dividends. REITs can be publicly traded on stock exchanges, or they can be privately held.