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What is a mortgage REIT?

Q:

What is a mortgage REIT?

A:

A REIT is a company that owns, and in many cases operates, income-producing real estate. Some REITs also engage in financing real estate. The principle advantage to qualifying as a REIT is the tax benefit: REITs do not pay taxes at a corporate level, which allows them to pass through profits to investors and avoid what is known as “double taxation.” You can view more on Two Harbors’ dividend by clicking here. There are several types of REITs, including mortgage REITs, which invest in real estate debt. The overall REIT industry is large: it is over $900 billion in size and mortgage REITs make up about $61 billion of this. To learn more about REITs and other industry topics, please visit the Webinars section of our website, by clicking here.