SIE practice questionmediumREITs
Which of the following best describes an equity REIT?
- AA trust that only invests in mortgage-backed securities
- BA trust that owns and manages income-producing real estate✓ Correct answer
- CA company that guarantees fixed interest payments
- DA fund that must distribute 50% of income
Explanation
Why B — A trust that owns and manages income-producing real estate
Equity REITs own real estate and collect rents. Mortgage REITs invest in mortgages (B), and there are no guarantees or 50% distribution requirements (C, D).
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