Complete Guide To Investment Companies, Funds And REITs

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Real Estate Investment Trusts (REITs) - Equity And Mortgage REITs

Equity REITs
Equity REITs invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenues come principally from their properties' rents. Most REITs focus on the "hard asset" business of real estate operations. When you read about REITs, you are usually reading about equity REITs. Equity REITs tend to specialize in owning certain building types such as apartments, regional malls, office buildings or lodging facilities. Some are diversified and some are specialized, meaning they defy classification - such as, for example, a REIT that owns golf courses.

Mortgage REITs
Mortgage REITs deal in investment and ownership of property mortgages. These REITs loan money for mortgages to owners of real estate, or purchase existing mortgages or mortgage-backed securities. Their revenues are generated primarily by the interest that they earn on the mortgage loans. Fewer than 10% of REITs are mortgage REITs; these REITs make loans secured by real estate, but they do not generally own or operate real estate.



Hybrid And Retail REITs


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RELATED TERMS
  1. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  2. REIT ETF

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  3. Funds Available For Distribution ...

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  4. Non-Traded REIT

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  5. Finite-Life REIT - FREIT

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  6. Adjusted Funds From Operations ...

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  2. Is NAV the best way to assess the value of an REIT?

    Examine and understand the usefulness of net asset value as an accurate metric with which to assess the value of a REIT investment. Read Answer >>
  3. Is a REIT a type of ETF?

    Learn the differences between real estate investment trusts, or REITs, and exchange-traded funds, or ETFs, to see how the ... Read Answer >>
  4. Which REITs pay the highest dividends?

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  5. What are the most popular ETFs that track the real estate sector?

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  6. How can I make equity investments in real estate?

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