Mortgage REITs (mREITs)
⛏ Coming soon
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
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
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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