Read This Before Buying a High-Yield REIT  Real estate
investment trusts are an asset class unlike any other. They're
required to pay out 90% of their income. Their earnings look
nothing like generally accepted accounting principles net
income. And their quarterly and annual reports are stuffed with
jargon.  I wanted to make a guide for the new REIT investor to
help explain some of the terminology common to equity real
estate investment trusts like Realty Income (NYSE: O  ) and
National Retail Properties (NYSE: NNN  ) . Here are five big
ideas you should know before buying REITs.  1. Net income
doesn't matter More than any other industry, net income doesn't
matter to a REIT. The best way to measure a REIT's profitability
is to look at its adjusted funds from operations. This measure
adds depreciation and amortization back to earnings and then
subtracts routine capital expenditures necessary to maintain the
properties owned by a REIT.  Adjusted funds from operations is
the best indicator of financial performan