investment real estate

Real Estate Investment Trusts

REITs are treated as a conduit entity for tax purposes, much like a closed-end fund that invests only in real estate.

However, to be afforded this treatment, they must pass through 85% of their ordinary income and 95% of their capital gains as dividends to their shareholders.

Real Estate Investment Trusts

Equity REITs buy properties directly in the expectation of realizing capital appreciation. Mortgage REITs lend money to developers or real estate owners. Hybrid REITs are a combination of the two.

REIT shares are traded on exchanges much like the stocks of other companies. The ready marketability of REIT shares distinguishes them from most other types of real estate investments.

The current income from a REIT is one of its most attractive features. However, REIT dividends tend to vary widely over time. Very often, debt financing is used in the expectation of increasing return on equity.

A real estate mortgage investment conduit (REMIC) is a conduit entity designed to facilitate the issuance of real estate mortgage-backed securities. A REMIC holds a fixed pool of real estate mortgages and issues a variety of interests in itself collateralized by those mortgages. Corporations, trusts and associations may qualify as REMICs.

A "regular" interest in a REMIC will entitle the owner to the receipt of a specific sum of money. A "residual" interest is any other kind of interest, and will usually resemble an equity interest in which payouts are subject to contingencies.

REMICs are intended to be the only means of issuing multiple-class mortgage-backed securities on a conduit taxation basis. A mortgage pool which fails to meet the REMIC tests is subject to taxation at both the entity and holder levels.

In the United States a REIT is a company that owns, and in most cases operates, income-producing real estate. Some REITs finance real estate. To be a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

In order to qualify for the advantages of being a pass-through entity for U.S. corporate income tax, a REIT must:

Be structured as corporation, trust, or association
Be managed by a board of directors or trustees
Have transferable shares or transferable certificates of interest
Otherwise be taxable as a domestic corporation
Not be a financial institution or an insurance company
Be jointly owned by 100 persons or more
Have 95 percent of its income derived from dividends, interest, and property income
Pay dividends of at least 90% of the REIT's taxable income
No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year (5/50 rule)
At least 75% of total investment assets must be in real estate
Derive at least 75% of gross income from rents or mortgage interest
No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.

Incomplete Listing of REITS:
  • AIMCO - Owns or operates multi-family properties in a variety of states. Includes online apartment search and investment information. (NYSE: AIV)
  • ALESCO Financial Trust - A real estate investment trust (REIT) that primarily invests in real estate-related securities.
  • Acadia Realty Trust - Real estate investment trust (REIT) specializing in acquiring, developing, expanding, renovating, and leasing shopping center properties. (NYSE: AKR).
  • Alliance Partnership Services - Matches buyers and sellers of limited partnership units in the secondary market.
  • Allied Capital Corporation - Provides financing to growing businesses in a variety of industries.
  • America First Mortgage Investments - Invests in a portfolio of high-grade adjustable rate mortgage securities (ARMs), multifamily housing properties and corporate securities.
  • AvalonBay Communities, Inc. - Specializes in developing, redeveloping, acquiring and managing luxury apartment communities in the US.
  • BRE Properties, Inc. - Various real estate assets, specializing in apartments. Includes shareholder information, press release area, and contact information.
  • Boston Properties - Real estate investment trust overview with list of current property holdings.
  • Brandywine Realty Trust - Engaged in the ownership, management, leasing, acquisition and development of primarily suburban office and industrial properties located in the Mid-Atlantic United States.
  • CBL and Associates Properties, Inc. - Serves as developers and managers of retail shopping properties in the US. Includes acquisitions, investor relations, properties.
  • Canadian Real Estate Investment Trust - Offers investors ownership in a diversified real estate portfolio. Definition of terms, company profile, office locations, portfolio and investor's information.
  • Capstead Mortgage Corp. - REIT earning income from investing in real estate-related assets on a leveraged basis. Features investor relations and customer center.
  • CenterPoint Properties Trust - A publicly traded real estate investment trust (REIT) and the largest industrial property company in the 1.2 billion square foot Chicago regional market.
  • Centro Properties Group - A retail investment organisation specialising in the ownership, management and development of retail shopping centres. Includes news, reports and investment products.
  • Cohen and Steers Capital Management Inc. - Investment firm specializing in REIT mutual funds.
  • Colonial Properties Trust - A diversified REIT owning and managing multi-family, office, and retail properties. Includes detailed investment and property information. (NYSE: CLP)
  • Cousins Properties - Fully integrated equity real estate investment trust (REIT), offering information on office, retail and land projects, and the corporation.
  • Dividend Capital Trust - Offers investment opportunities through REIT.
  • Duke Realty Investments, Inc. - Owns a diversified portfolio of industrial, office and retail properties in 13 major U.S. cities. Features properties and services, careers, and investor relations. Based in Indianapolis.
  • Equity Office Properties Trust - Offers nationwide office property search engine, careers and investor relations.
  • Federal Realty Investment Trust - Specializing in the ownership, management, development and re-development of shopping centers and street retail properties located in major metropolitan markets across the United States.
  • Felcor Lodging Trust - Publicly traded company that owns and manages hotels, primarily in the United States and Canada. Includes links to individual properties.
  • First Industrial - Provider of diversified industrial real estate for corporations doing business nationally, regionally, or locally. Develops, acquires and operates only industrial real estate.
  • General Growth Properties (GGP) - Publicly traded real estate investment trust that owns, develops, and operates regional shopping malls across the United States.
  • Glimcher Realty Trust - National REIT developing enclosed regional and super-regional malls and community shopping centers. (NYSE: GRT)
  • H and R REIT - A Canadian REIT with a diversified portfolio of office, commercial, and retail properties in Canada and the United States.
  • Invest in REITs - Designed to help individual investors learn more about REITs and publicly traded real estate.
  • Investors Real Estate Trust - Midwestern real estate investment trust. (Nasdaq: IRETS).
  • Kennedy-Wilson, Inc. - An international real estate investment, services and fund management firm. The company offers real estate services including brokerage, asset management, property management, development, acquisition and investment sales. The firm sources and places debt and equity for real estate acquisitions through its investment and fund management divisions. (Nasdaq: KWIC).
  • Kimco Realty Corporation - Owns, manages, leases, develops, and acquires shopping centers across the USA.
  • Macerich Co. - Owns and operates regional shopping malls in the western US.
  • Mack-Cali Realty Corporation - Real estate investment trust (REIT), with office and office/flex properties located primarily in the northeastern United States. (NYSE: CLI)
  • MeriStar Hotels & Resorts Inc. - Hotel real estate investment trust and management company. Includes investor relations, directory of hotels and employment opportunities.
  • Monmouth Real Estate Investment Corporation - An equity real estate investment trust.
  • National Health Investors - A healthcare REIT providing mortgage and sale/leaseback financing on healthcare facilities including nursing homes, assisted living, independent living, medical office buildings and hospitals.
  • National Retail Properties - Equity real estate investment trust owns, builds and manages single tenant net-leased retail properties nationwide. Includes investor relations, real estate services, and property info.
  • One Liberty Properties, Inc. - A self-administered and self-managed real estate investment trust that acquires, owns and manages a geographically diversified portfolio of retail, industrial, office, movie theaters and other properties under long term leases.
  • Pennsylvania Real Estate Investment Trust - Invests in retail shopping malls and power centers especially in the eastern United States. Based in Philadelphia, PA 19102, USA. (NYSE:PEI)
  • Post Properties, Inc. - Developer and operator of upscale multi-family apartment communities. (NYSE: PPS)
  • Potlatch Corporation - Owns sustainable forestland in Arkansas, Idaho, Minnesota and Wisconsin. Provides information on land, facilities, products, real estate and investment resources.
  • Prime Retail, Inc. - A self-administered and self-managed real estate investment trust, and is one of the world's largest developer, owner, and manager of outlet centers. Based in Baltimore, Maryland.
  • REIT Funding, LLC - Provides services to form and manage a private REIT.
  • Realty Income, Inc. - Acquires and manages freestanding, single-tenant properties leased to retail chains. (NYSE: O)
  • Reckson Associates Realty Corporation - Office and industrial real estate investment firm with locations in New York, New Jersey and Connecticut.
  • Simon Property Group, Inc. - Real estate investment trust engaged in the ownership and management of income-producing properties, primarily regional malls and community shopping centers. Includes corporate and investor data, and mall locator.
  • Skyline - A real estate investment trust (REIT) based in Guelph, Ontario, Canada, focused on acquiring and managing apartment buildings and commercial space in diverse communities.
  • Sovran Self Storage, Inc. - Fully integrated, self-administered and self-managed real estate investment trust (REIT) that acquires, manages, and constructs self storage properties.
  • Sunstone Hotel Investors, Inc. - A Southern California-based lodging real estate investment trust (REIT) which operates under nationally recognized brands such as Marriott, Renaissance, Hyatt, Hilton, and Fairmont. (NYSE:SHO)
  • TRIZEC Properties, Inc. - Commercial property investment company focusing on commercial office space in major US metro areas.
  • Tanger Factory Outlet Centers, Inc. - Real estate investment trust (REIT) that develops, owns, and manages retail outlet centers. Features corporate and investor data, and outlet and brand information. ( NYSE: SKT )
  • The Mills - Property development and operations in retail and entertainment with properties in 12 states. Includes corporate information, press releases, and career opportunities.
  • United Dominion Realty Trust, Inc. - Develops, manages, acquires, and selectively sells apartment complexes nationwide, particularly in the West and South. Stock is traded on the New York Stock Exchange under the symbol UDR.
  • United Mobile Homes, Inc. - Real estate investment trust specializing in manufactured home communities.
  • Washington Real Estate Investment Trust (WRIT) - Acquires and manages income-producing, small tenet properties in the Baltimore-Washington, DC area.
  • Weingarten Realty Investors - Real estate investment trust. Includes corporate and investor information, and property portfolio.
  • Westfield - Australian firm managing vertically integrated shopping center operations in Oceania, the US, and the UK. Corporate and investor news, contact information, and links to centers.
  • Westfield Group - Builds, funds, and manages shopping centers in Australia, the United States, New Zealand and the United Kingdom. Listed on the Australian Stock Exchange. (ASX: WDC)
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