Which of the following describes an Equity REIT?

An Equity REIT stands out as a specific type of Real Estate Investment Trust that primarily focuses on owning, operating, and managing income-generating real estate properties. This includes a diverse range of property types such as shopping malls, office buildings, apartments, hotels, and industrial properties. The core of their operation revolves around the revenue generated from leasing space and collecting rents from tenants, which forms the basis of their income.

Unlike other types of REITs, such as Mortgage REITs, which mainly provide financing for real estate by lending money to property owners or investing in mortgage-backed securities, Equity REITs are directly involved in real estate ownership. This direct involvement allows Equity REITs to benefit from property appreciation and rental income, making them a popular choice for investors interested in the actual physical real estate sector.

This characteristic differentiates them from other REIT types, reinforcing why owning, operating, and managing income-generating assets is the defining feature of an Equity REIT.