A REIT is a securities form of financial instrument that pools funds from investors to be invested primarily in real estate for the purpose of distributing the rental income and capital gains on sale deriving from such to the investors. Named REIT, from the acronym of Real Estate Investment Trust in English, the term "J-REIT" is used to refer to Japanese REITs in Japan.

The REIT structure was initiated in 1960 in the U.S. and is now widely adopted by Europe, Australia, Asia and other parts of the world. In Japan, enactment of the Investment Trust and Investment Corporation Law (Amended) in November 2000 enabled real estate investment trusts and real estate investment corporations to be formed. Kenedix Realty Investment Corporation is listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange in July 2005.

J-REITs are experiencing significant interest and growth due to their attractive rates of return to investors. The Investment Corporations engaged in J-REIT activities determine the amount of dividend distribution, which must exceed 90% of the Investment Corporation's distributable income. Income is essentially derived from real estate rental income and as such is relatively stable.