Debt REITs, or Real Estate Investment Trusts, are companies that primarily invest in real estate debt rather than physical properties. They generate income by lending money to property owners or investing in mortgage-backed securities. This allows investors to earn returns from interest payments, making them a popular choice for those seeking income without the responsibilities of property management. These REITs typically focus on commercial real estate, such as office buildings and shopping centers. By pooling funds from multiple investors, Debt REITs can provide financing to a variety of real estate projects, helping to stimulate the property market while offering investors a way to diversify their portfolios.