Equity REIT
Plain-English definition
A REIT primarily engaged in owning or operating income-producing real estate.
Why it matters
Property economics differ from the economics of financing property through loans.
Example
A hypothetical apartment REIT receives rents and pays property operating expenses.
How income investors use it
Read operating results and the company's dividend-support measure; do not assume gross rent is distributable earnings.
Fly High perspective
Fly High uses the earnings measure the company identifies as the source of its dividend and keeps that measure consistent across the coverage calculation.
This material is general education, not individualized investment, tax, or legal advice.