Hybrid REIT

A hybrid REIT combines both property ownership and mortgage lending, deriving income from both rental operations and interest on real estate loans.

Hybrid REIT StructureComponent
Equity REIT componentOwns and operates properties, rental income
Mortgage REIT componentOriginates or buys mortgages, interest income
Income diversificationReduces reliance on single revenue source
Balance optimizationAdjust mix based on market conditions
Leverage profileCan use property value and loan portfolio as collateral
Example AllocationPercentage
Property ownership60% of assets
Mortgage portfolio40% of assets
Rental income yield5%
Interest income yield7%
Blended yield5.8%
Risk profileModerate, diversified income streams


Related Terms

Hybrid REITREIT (Real Estate Investment Trust)Dividend (REIT Distributions)Equity REITMortgage REIT Income DiversificationReal Estate Finance

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