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.
Why mREITs Matter for Solium
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 Solium
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