Broad Categories of REITS: Liability side-Equity REITs (ER): These “own and operate” income-producing real estate entities (Development REITs and Rental REITs). Their revenues come from the Rent charged on their properties & Capital gains on sales.

Mortgage REITs (MR): Deal in investment and ownership of property mortgages. These REITs loan money to owners of real estate, or invest in (purchase) existing mortgages or MBS. The interest on money directly lent to real-estate owners is part of their revenues.

Hybrid REITs: These not only operate properties but also lend to real estate owners and operators, thus combining the investment strategies of the above 2 types.