What types of properties do equity REITs primarily invest in?

Equity REITs primarily invest in income-producing real estate assets, including apartment buildings, shopping centers, and office buildings. This is because the primary goal of equity REITs is to generate rental income and appreciation from their real estate investments. By focusing on properties that produce cash flow, such as residential complexes and commercial spaces, equity REITs can provide investors with dividends derived from the rental income these properties generate. This structure allows equity REITs to directly engage in managing and operating these properties, thereby participating actively in the real estate market and benefiting from property value appreciation over time.

In contrast, other property types listed, such as manufacturing facilities, government properties, and undeveloped land, do not typically fall under the core investment strategy of equity REITs, which centers on income-generating assets.