InvestorQ : What are the different types of real estate investment trusts (REITs)?
riya Ranade made post

What are the different types of real estate investment trusts (REITs)?

Answer
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Samita Patil answered.
1 year ago


A real estate investment trust (REIT) is a company that buys real estate to generate regular and lucrative returns for its investors. Through REITs, small investors can invest in the otherwise expensive realty market.

There are two types of REITs:

Equity REITs – Majority of REITs are publicly-traded equity REITs, which own and manage properties. Equity REITs own or operate income-producing real estate. The market often refers to equity REITs simply as REITs. Equity REITs invest in:

- Apartment buildings

- Single-family homes

- Shopping malls

- Freestanding retail

- Healthcare properties

- Office buildings

- Industrial buildings

- Self-storage facilities

- Data centres

Mortgage REITs – or mREITs invest in mortgage-backed securities, known as mortgage REITs. These REITs provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.