Which of the following REIT types is NOT likely to own real property?
a) Hybrid REIT
b) Equity REIT
c) Mortgage REIT
d) All of the above
Answer:
option c) Mortgage REIT
Explanation:
REIT = Real Estate Investment Trusts = these are the securities in which company owns and operates real estate or related assets. Generally these are of two types: Equity REIT and Mortgage REIT
Equity REIT: These trusts own properties and generate revenue through rental income. These trusts acquire, manage, build, renovate, and sell income-producing real estate.
Mortgage REIT: These trusts do not own properties and generate income from the interest on investments on real estate assets.
Hybrid REIT: These trusts are combination of equity REITs which own properties.
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