When investing in Mortgage Real Estate Investment Trusts (REITs), it’s important to remember that these types of REITs do not actually own the property, but directly or indirectly lend money to the owner-operator of the property. During periods of rising interest rates, short-dated REITs outperformed and averaged the Dow Jones Industrial Average in all seven periods Excess return of 5.7%.

Meanwhile, long-dated REITs outperformed the Dow Jones Industrial Average in four out of seven periods of rising interest rates, posting an average excess return of 0.1%. Additionally, mortgage REITs typically have an average return of at least 8.2% over a 10-year period, as recorded by SP Global with data as of September 30, 2019.

Check out these two mortgage REITs with rising yields that are currently trading below book value.

See also: 2 high-yield food REITs offer the best bang for your buck as a global recession looms

NextPoint Real Estate Inc. NREF offers a dividend yield of 10.78%, or $2.00 per share annually through quarterly payments, with a track record of a one-time increase in its dividends over the past year. NexPoint Real Estate provides structured financing solutions through investment in residential rentals for single family homes, mid-size multi-family homes, warehouse and select service properties, and extended-stay hospitality properties.

As of Q3 2022, NexPoint Real Estate has a total portfolio of at least $1.7 billion consisting of 83 investments with an average remaining life of 6.2 years. NexPoint has book value per share of $23.48, shares of NREF closed at $18.63 on Friday.

iStar Inc. STAR offers a dividend yield of 6.28%, or 50 cents per share annually, makes quarterly payments, and has a proven track record of increasing its dividends for two consecutive years. iStar is the founder, investment manager and largest shareholder of storage SECUREwhich holds approximately two-thirds of its shares and is responsible for its strategy and growth.

In the third quarter…