Final answer:
Equity REITs are the most attractive to income-oriented investors as they provide a steady stream of income through dividends and the potential for long-term capital appreciation.
Step-by-step explanation:
The type of real estate investment trust (REIT) that is most attractive to income-oriented investors is Equity REIT. Equity REITs own and operate income-generating real estate properties, such as apartment buildings, office spaces, and shopping centers. These REITs earn rental income from tenants and pass on a portion of the profits to their investors in the form of dividends.
Equity REITs are popular among income-oriented investors because they provide a steady stream of income through dividend payments. Additionally, they offer the potential for long-term capital appreciation as the value of their real estate properties appreciates over time. Examples of equity REITs include companies like Simon Property Group and Prologis.
Other types of REITs, such as Mortgage REITs, primarily invest in mortgages and earn income from interest payments. No-Load REITs are sold directly to investors without commission fees, while Unit Trust REITs pool money from multiple investors to invest in real estate properties. Exchange-traded REITs are REITs that are traded on stock exchanges, allowing investors to buy and sell shares.