Series 7 practice questioneasyAlternative Investments — REITs
An equity REIT primarily generates income from:
- AInterest on mortgage loans
- BFees from managing other REITs
- CGains from trading real estate securities
- DRental income from owned properties✓ Correct answer
Explanation
Why D — Rental income from owned properties
Equity REITs own and operate income-producing real estate properties such as apartments, office buildings, shopping centers, and warehouses. Their primary revenue comes from rental income and property appreciation. This distinguishes them from mortgage REITs, which invest in mortgages and mortgage-backed securities and earn interest income.
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