Real Estate & REITs
What is the difference between an equity REIT and a mortgage REIT?
Model answer
An EQUITY REIT owns and operates physical properties and earns rental income - its economics are driven by occupancy, rents, and property values. A MORTGAGE REIT (mREIT) owns real estate DEBT -…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Real Estate & REITs
- What is net operating income (NOI), and what does it exclude?
- What is a cap rate, and how do you use it to value a property?
- Why does a LOWER cap rate mean a HIGHER property value?
- What drives cap rates up or down?
- How should you think about the spread between cap rates and interest rates?
- What is the difference between a going-in cap rate and an exit cap rate, and why do underwriters usually assume the exit cap is higher?