Real estate question; book5, reading 31, pg 15 why, therefore, question, receive

ishfaque

It says - mortgage REITs lend money to builders and make loan collections. Shareholders receive interest income and capital appreciation income from improvement in the prices of loan”.
Please explain on how mortgage REITs will have capital appreciation income from improvement in the prices of loan? A loan is a loan, and why will there be improvement in the price of it.. and therefore derive capital appreciation.
TY.

cyber21

you wish you could make money on a mortgage REIT. Ask Annaly Capital how they make money?

ramzes

so many different answers.
also :
loan are assets backed securities. if property price goes up, risk goes down, price goes up( because interest rate goes down )