02/27/2023
What Is A REIT? (Real Estate Investment Trust)
What Companies Are Considered REITs?
To qualify as a REIT, a company has to meet certain requirements as outlined by the Internal Revenue Code (IRC). In order to be considered a REIT, a company must:
Be a taxable corporation that is managed by a board of directors or trustees
Have at least 100 shareholders after the first year
Acquire 75% of gross income from rent, interest on mortgages or real estate sales
Invest a minimum of 75% of total assets in real estate, cash or U.S. Treasuries
Pay at least 90% or taxable income in the form of shareholder dividends
Have 50% or less or shares held by five or fewer people