REIT Types: Major Types of Real Estate Investment Trusts (REITs) - CTFA Exam

Major Types of Real Estate Investment Trusts (REITs) - CTFA Exam

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Question

Major types of Real Estate Investment Trust (REITs) include all of the following EXCEPT:

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Explanations

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A. B. C. D.

D

Real Estate Investment Trusts (REITs) are companies that own or finance income-producing real estate assets. These trusts provide a way for individual investors to invest in real estate without having to directly buy, manage, and maintain properties. REITs can be classified into different types based on their underlying assets and business strategies.

The major types of REITs include:

A. Equity REITs: These REITs invest in and own income-producing real estate properties, such as apartments, office buildings, hotels, shopping centers, and warehouses. They generate revenue primarily through rental income and capital appreciation of the properties they own.

B. Mortgage REITs: These REITs invest in and own mortgages on real estate properties, as opposed to owning the properties themselves. They generate revenue by earning interest income on the mortgages they hold.

C. Hybrid REITs: These REITs combine the investment strategies of equity and mortgage REITs by owning both properties and mortgages. They generate revenue through a combination of rental income, interest income, and capital appreciation.

Therefore, the correct answer to the question is (D) None of these. All the options presented in the question are major types of REITs, and there are no other major types of REITs that are excluded from this list.