Equity REITs essentially represent fixed-income portfolios. Thus, their market values will be influenced by interest rate movements.

Question

Quizplus · Accepted Answer

Equity REITs are not fixed-income portfolios but rather invest in income-producing real estate properties. While interest rate movements can impact the borrowing costs for REITs, their market values are primarily determined by the underlying performance of their properties and the demand for income-producing assets.

Equity REITs Essentially Represent Fixed-Income Portfolios