A "paper clip REIT" boosts a REIT's tax advantages while allowing it to operate assets that such trusts typically cannot operate. It gets its name from the fact that it involves two separate companies that are "clipped" together by an arrangement in which one entity owns the properties, and the other manages them. Because there may be conflicts of interest, the paper clip REIT requires more regulatory scrutiny. As a result, this type of REIT is unusual. Its structure is similar but more flexible than a "stapled REIT."

A Paper Clip REIT, or Real Estate Investment Trust, is a type of investment that allows investors to purchase shares in a portfolio of income-producing real estate assets. These trusts are usually focused on a particular type of asset, such as residential, commercial, or industrial real estate. Paper Clip REITs provide individuals with the opportunity to invest in real estate without having to buy and manage properties directly. They can also provide tax advantages, such as tax deductions for expenses related to the trust.