Capital gain distributions refer to the payments made by a real estate investment trust (REIT) to its shareholders, which arise from the sale of properties or other investments that have appreciated in value. These distributions are often a significant source of income for investors, as they reflect the profit generated from the REIT's investment activities. Understanding capital gain distributions is essential for evaluating a REIT's performance and tax implications, as they can influence an investor's overall return and tax liability.
congrats on reading the definition of capital gain distributions. now let's actually learn it.