The simplest durable lesson here is this: rEITs are not just "real estate stocks"; they are cash-flow vehicles with specific structural rules. Three quick checks before you act: 1. Name the mechanism in plain English: REITs must distribute most of their taxable income, which changes both their growth profile and their sensitivity to interest rates. 2. Say why it matters for behavior or portfolio decisions: Understanding the distribution requirement explains why REIT returns are so rate-sensitive and why internal growth depends on external financing. 3. Set the review question: Explain in one sentence what problem this idea solves and what problem it does not solve. In real life: A REIT cannot retain much earnings to fund growth, so it must raise equity or debt. That makes capital market conditions unusually important for REIT management. Common slip: The mistake is treating REITs as simple real estate proxies without understanding the forced distribution and external financing dynamic. A lot of confusion disappears once you separate the headline from the mechanism.