Investments The Ticker

Creating a REIT portfolio without the mortgage REIT risk

Last year contributor Brad Thomas of Seeking Alpha wrote an article (Balancing Risk: REITs That Outperform in Good Times and Bad) in which he explained the use of leverage and its correlation with the higher risk REIT alternatives known as mortgage REITs.

It is well known that mortgage REITs own debt, instead of property, and the risks of investing in mortgage REITs are considerably elevated, as compared with other dividend paying stocks.

Source: Seeking Alpha
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