SIE (Securities Industry Essentials) Practice Exam 2026 - Free SIE Practice Questions and Study Guide

A hybrid REIT combines both equity REITs and mortgage REITs. Equity REITs primarily invest in owning and managing income-producing real estate properties, while mortgage REITs invest in financing real estate by purchasing or originating mortgage loans and holding them in their portfolios. This combination allows a hybrid REIT to have a diversified investment strategy that includes direct property ownership and mortgage investments.

The other options suggest pairings of specific sectors or property types rather than the fundamental categories of REITs. For instance, pairing mortgage with healthcare, retail, industrial, or residential types does not encapsulate the core hybrid nature that defines a hybrid REIT. Instead, the correct answer reflects the essential distinction between ownership of properties and the financing aspect represented by mortgages, which is crucial for understanding how hybrid REITs operate.