This is comparing apples and oranges. Qualified Opportunity Funds can themselves be Real Estate Investment Trusts.
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What are the main differences between REITs and QOFs?
What are the benefits of investing in real estate in an Opportunity Zone versus a REIT?
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Qualified Opportunity Zones bring tax benefits that a Real Estate Investment Trust investment does not for rollover capital gains. That is the essence of why QOZs were created.
In general, a Real Estate Investment Trust allows investors to invest in real estate through a publicly traded entity that is not subject to an entity-level tax (subject to exceptions). A REIT does not provide the investor with any deferral or exclusion of gains that the investor may invest in the REIT or subsequently recognize from his or her investment in the REIT. By contrast, a Qualified Opportunity Fund (QOF) allows investors to defer or eliminate certain gains that they invest in the QOF and, upon the satisfaction of certain requirements, to exclude from income any additional gain from their investment in the QOF. It is possible for an entity to qualify as both a REIT and a QOF.
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