Equity REITs are the most prevalent type of REITs. Equity REITs own or operate income-producing real estates like shopping malls, commercial real estate, health care facilities, apartment buildings, warehouses, office buildings, cellphone towers, and hotels.
Mortgage REITs (mREITs) only provide financing for income-producing real estate by borrowing money at low short-term interest rates and purchase mortgages that pay more excellent long-term interest rates.
They own and manage properties collecting rents, and also invest in mortgage securities. Hybrids REITs try to profit from rising and falling interest-rate environments by investing in actual properties and mortgages.