A Debt REIT (Real Estate Investment Trust) is a company that primarily invests in real estate debt rather than physical properties. These trusts provide financing for real estate projects by purchasing mortgages or mortgage-backed securities. Investors in Debt REITs earn income through the interest payments on these loans. Unlike traditional equity REITs, which own and manage properties, Debt REITs focus on generating returns through lending. They can offer a steady income stream to investors, making them an attractive option for those seeking regular cash flow without the responsibilities of property management.