What type of REIT invests exclusively in real estate properties?

The choice that indicates a REIT that invests exclusively in real estate properties is indeed property (equity) REITs. These types of REITs focus primarily on owning and managing income-producing real estate. This includes various property types such as residential buildings, commercial spaces, warehouses, and hotels.

Property (equity) REITs generate revenue primarily through leasing space and collecting rents on the properties they own. Because their investments are limited to physical properties, they benefit from the appreciation of real estate values and the steady cash inflow from rental income. This differentiates them from other types of REITs that may have different focuses or investment strategies.

Other types of REITs, such as hybrid REITs, engage in both equity and mortgage investments, which means they own properties but may also invest in real estate loans. Mortgage REITs, on the other hand, primarily invest in real estate debt and earn income from the interest on loans secured by real estate rather than from property ownership or management. Dividend REITs is not a distinct type of REIT; instead, it generally refers to REITs that focus on distributing dividends to shareholders. However, the term doesn't specifically classify the type of assets the REIT invests in.