There are two major types of REITs: Equity REITs and Mortgage REITs. Each differs in terms of what they invest in. Which of the following choices best describes the investment focus of an Equity REIT?

Question

Quizplus · Accepted Answer

Equity REITs primarily invest in and operate commercial properties, such as office buildings, shopping centers, and apartment buildings. They generate income through the rental and leasing of these properties. Therefore, option B is the correct answer. Option A is incorrect because Equity REITs do not typically invest a significant percentage of their assets in mortgages. Option C refers to Mortgage REITs, not Equity REITs. Option D is also incorrect because Equity REITs do not purchase ownership interests in shares of pension funds or life insurance companies.

There Are Two Major Types of REITs: Equity REITs and Mortgage