They can also realize capital gains by selling properties that have appreciated in value. Conversely, mortgage REITs make loans to commercial real estate developers and derive their income primarily from interest payments on those loans. Hybrid REITs combine the characteristics of both equity and mortgage REITs. In general, we currently prefer to invest the real estate portion of our portfolios in equity and hybrid REITs. Past performance may not be indicative of future investment results.
Any investment involves potential risk, including potential loss of capital.
Before making any investment decision, please consult your legal, tax and financial advisors. The value of real estate and related securities is also affected by changes in general economic and market conditions. All rights reserved.