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Benzinga
Benzinga
Business
Robert Kuczmarski

Mortgage REIT Vs. Equity REIT: How These 2 Firms Have Yields Higher Than The Risk-Free Rate

When investing in real estate investment trust, there is a common misunderstanding about the the difference between mortgage REITs and equity REITs.

Mortgage REITs do not own any properties, rather they earn money from the interest on outstanding loans. With equity REITs, the firm owns the real estate and must record the change in the accretive value of the property, whether it increases or decreases in value.

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