Which statement is correct regarding an REIT?

I. Mortgage REITS can only invest in long-term mortgages.

II. Both equity and mortgage REITS distribute at least 90 percent of their net investment income.

III. The income of an equity REIT is derived from the difference between net rental income and interest paid on loans.

IV. The income of a mortgage REIT is derived from the spread between the lending rate to developers and borrowing rate from banks.

A. I, II, III.

B. I, II, IV.

C. II, III, IV.

D. I, III, IV.