Collection: Mortgage REITs
⛏ Coming soon
Mortgage REITs (mREITs) provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities (MBS) and earning income from the interest on these investments. mREITs help provide essential liquidity for the real estate market.
Mortgage REITs can become on-chain yield sources in a tokenized format. You can:
- Tokenize tranches of mortgage-backed securities
- Offer debt yield vaults backed by residential or commercial loans
- Launch stable, high-yield RWA instruments derived from tokenized credit
What is a Mortgage REIT (mREIT)?
A Mortgage Real Estate Investment Trust (mREIT) is a type of REIT that invests in real estate debt, rather than owning physical properties. Instead of collecting rent, mREITs earn income from:
-
Interest on mortgages (residential or commercial)
- Mortgage-backed securities (MBS)
- Real estate loans and structured credit
They’re essentially lenders or investors in real estate credit, not landlords.
How Mortgage REITs Work
- mREIT raises capital from investors (and often borrows additional funds using leverage).
- It uses this capital to buy or originate mortgages, or invest in mortgage-backed securities.
- The mREIT earns income from the interest payments on these loans or securities.
- The mREIT is required to pay out 90%+ of its net income as dividends to maintain REIT status.
Key Characteristics
| Feature |
Mortgage REIT |
| Assets Held |
Mortgages, MBS, real estate debt instruments |
| Income Source |
Interest income |
| Leverage |
Typically high to boost yield |
| Volatility |
Sensitive to interest rates and credit risk |
| Liquidity |
High for public mREITs, lower for private |
| Dividends |
Often higher than equity REITs (but more volatile) |
| Tax Structure |
Same as other REITs (90% income payout rule) |
mREIT vs. Equity REIT — At a Glance
| Feature |
Equity REIT |
Mortgage REIT (mREIT) |
| Owns property |
✅ Yes |
❌ No |
| Income source |
Rental income + asset growth |
Interest income from debt |
| Sensitivity |
Inflation, property values |
Interest rates, credit risk |
| Risk profile |
Moderate |
Higher (due to leverage + rates) |
| Dividend yield |
4–8% (typical) |
8–15% (typical) |
| Tokenization use |
Direct property tokenization |
Debt-based tokenization |
Who Uses mREITs?
- Yield-seeking investors
- Income-focused portfolios
- Institutions seeking mortgage exposure
- Hedge funds and REIT-specialized managers
- Now, DeFi protocols and tokenized debt platforms
Example: Tokenized mREIT Product
"SOL-MBS Yield Token"
✓ Backed by short-duration mortgage bonds
✓ Pays USDC or fiat-equivalent yield monthly
✓ Transparent loan-level reporting on-chain
✓ Accessible to qualified investors via TauLayer
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