Which type of REIT primarily collects rent from properties they own?

The type of REIT that primarily collects rent from properties they own is the Equity REIT. These REITs invest directly in physical, income-producing real estate, such as residential buildings, shopping centers, or office spaces. The primary source of revenue for Equity REITs comes from leasing space and collecting rental payments from tenants. This structure allows them to benefit from the ongoing cash flow generated by the properties they manage.

Equity REITs typically focus on long-term appreciation in property values and generating stable income through rents, which can provide a consistent dividend return to investors. The emphasis on property ownership and management distinguishes them from other types of REITs, such as Mortgage REITs, which invest in mortgages or mortgage-backed securities rather than directly owning properties.