Real Estate Investment Trust (REIT) | Practical Law

Real Estate Investment Trust (REIT) | Practical Law

Real Estate Investment Trust (REIT)

Real Estate Investment Trust (REIT)

Practical Law Glossary Item 5-501-5112 (Approx. 2 pages)

Glossary

Real Estate Investment Trust (REIT)

A tax designation for a corporation, trust, or association that owns and operates real estate. REIT status lowers or eliminates corporate income tax liability. REITs can be held privately or publicly, and can be listed on stock exchanges. They must distribute 90% of their income to investors every year as dividends. Financial institutions and insurance companies do not qualify. Each state has a distinct treatment of REITs, and not every state has a specific REIT statute. For more information, see Practice Note, Multistate Real Estate Ownership: Overview.