Mortgage REIT
Abbreviation: mREIT
Plain-English definition
A REIT that originates or holds mortgages, mortgage-backed securities, or related real-estate financing assets.
Why it matters
Income depends on financing assets and associated costs rather than simply collecting building rents.
Example
A hypothetical mortgage REIT earns interest on loans and incurs interest on its own funding.
How income investors use it
Identify the asset mix and the company's reported dividend-source measure. FFO should not be imposed merely because the business is a REIT.
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.