Which of the following types of REIT focuses primarily on owning real estate properties?

The type of Real Estate Investment Trust (REIT) that focuses primarily on owning real estate properties is the equity REIT. These REITs invest directly in physical properties, such as residential buildings, office spaces, and retail centers, and they generate income mainly through leasing and rental income from these properties. Equity REITs typically benefit from property appreciation over time as the value of the real estate increases, which can lead to higher returns for investors.

In contrast, other types of REITs have different focuses; mortgage REITs primarily lend money to real estate owners and operators or acquire mortgage-backed securities rather than owning physical properties. Hybrid REITs combine aspects of both equity and mortgage REITs by investing in both real properties and mortgages. The term "debt REIT" is not commonly used in the industry, but it could confuse readers as it suggests a focus on debt rather than on physical property ownership.

Understanding the primary focus of equity REITs helps investors recognize the benefits and risks associated with this type of investment, including the potential for consistent income through rents and returns linked to real estate market performance.