A type of real estate investment trust (REIT) that operates on the basis of purchasing an income-generating unit of commercial real estate (the equity). Then the acquirer manages it (or construct or renovate it in order to sell it). An equity real estate investment trust generates its income from the rent or sale proceeds of the underlying equity.

The company running an equity real estate investment trust may invest solely in one sector or more depending on its business model. In addition to equity real estate investment trust, the other most popular REIT structure is mortgage REIT. Equity real estate investment trusts are distinguished by their structure which involves a primary asset being any of the following modes or objectives: 1) direct ownership of real estate, 2) leasing, 3) development, 4) asset management, or 5) rental income.