SIE practice questionhardREITs
Which of the following is true of an equity REIT?
- AIt cannot pay dividends to shareholders
- BIt makes short-term commercial loans
- CIt primarily owns and operates income-producing real properties✓ Correct answer
- DIt invests only in mortgage-backed securities
Explanation
Why C — It primarily owns and operates income-producing real properties
An equity REIT primarily owns and operates income-producing real estate. Mortgage REITs focus on real estate loans or mortgage-backed securities, and REITs can pay dividends to shareholders.
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