Most REITs are traded on major stock exchanges, but there are also public non-listed and private REITs. The two main types of REITs are equity REITs and mortgage REITs, commonly known as mREITs. Equity REITs generate income through the collection of rent on, and from sales of, the properties they own for the long-term. mREITs invest in mortgages or mortgage securities tied to commercial and/or residential properties.

Public REITs

Public REITs are registered with the SEC, trade on national stock exchanges and provide investors access to diverse portfolios of income-producing assets they would not be able to afford on their own. These real estate companies own properties in a range of real estate sectors that are leased to tenants, such as office buildings, shopping centers, apartment complexes and more. They distribute the bulk of their income to shareholders in the form of dividends. Learn more

PNLRs

Public non-listed REITs (PNLRs) are registered with the SEC but do not trade on national stock exchanges. Liquidity options vary and may take the form of share repurchase programs or secondary marketplace transactions but are generally limited. Learn more

Private REITs

Private REITs are real estate funds or companies that are exempt from SEC registration and whose shares do not trade on national stock exchanges. Private REITs generally can be sold only to institutional investors. Learn more

Categories of REITs

The two main categories of REITs, in terms of the investments they pursue, are equity REITs and mortgage REITs, commonly known as mREITs.

Equity REITs

Equity REITs are real estate companies that own or manage income producing properties – such as office buildings, shopping centers and apartment buildings – and lease the space to tenants. After paying the expenses associated with operating their properties, equity REITs pay out annually the bulk of the income to their shareholders as dividends. Learn more

mREITs

Mortgage REITs (mREITs) provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments. Learn more