Hybrid REIT Definition

A Hybrid REIT is a Real Estate Investment Trust that physically owns real estate (e.g., apartment buildings, office buildings, shopping malls), as well as debt instruments secured by mortgages on real estate (e.g., first mortgages, mezzanine debt, CMBS, collateralized debt obligations). A Hybrid REIT therefore generates income from rent and capital gains, like an Equity REIT, as well as interest income, like a Mortgage REIT.

An example of a Hybrid REIT is Grammercy Capital Corporation (GKK), which transformed itself from a pure Mortgage REIT into a Hybrid REIT when it acquired American Financial Realty Trust, an owner and operator of property leased to banks and financial services companies. GKK acquired American Financial Realty Trust on April 1, 2008, for $3.1 Billion.

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Click here for a list of Apartment REITs
Click here for a list of Healthcare REITs
Click here for a list of Hotel REITs
Click here for a list of Industrial REITs
Click here for a list of Office REITs
Click here for a list of Retail REITs
Click here for a list of Storage REITs