hi peeps, hoping some resident real estate/finance gurus can help clear things up.
How is a real estate company "qualified" for REITs? Isn't it just a matter of filing the right paperwork on the part of the real estate developer/company? i found it curious that a certain financial firm picked a certain real estate company as one of their 2010 stock picks, since most of its assets are qualified for REITs daw.
It is said that companies who issue REITs are required to give out 90%of the company's earnings to REIT holders; ano to, outright cash or cash div, or me choice to give out stock divs as well?
On the part of the REIT holder, are there any taxes due?
tia
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December 23rd, 2009 09:37 AM #1
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Tsikot Member Rank 4
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December 23rd, 2009 01:44 PM #2as far as i know, a REIT is a company that owns and operates income-generating real estate
a REIT invests in commercial and/or residential properties which it rents out
so its income comes from rental income
a REIT pays no income tax BUT is required to distribute 90% of its income to shareholders
a REIT also has to be listed on a stock exchange
an investor buys shares of a REIT and earns dividends which comes from the yearly 90% income distribution
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