Equity vs. Mortgage REITs

Some REITs own buildings; others own loans. They behave very differently. Here is how equity REITs and mortgage REITs make money, and why the highest yields come with the biggest risks.

Equity REITs own property

Equity REITs own real buildings and earn rent. Their income tends to grow over time as rents rise, and property values can appreciate. Most REITs, and most of the REIT market’s value, are equity REITs.

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