real estate investment trust

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real estate investment trust

n. nick-named REIT, a real estate investment organization which finds investors and buys real property and gives each investor either a percentage interest in the property itself or an interest in a loan secured by a mortgage or deed of trust on the property. Usually the loan is used to develop the property and build upon it, and then there is a division of profits upon sale---if there is a profit.

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Overall, the REIT industry has continued to grow, which is part of what continues to make it an attractive investment vehicle for the large investors.
857(b)(3)(F) and 897(h)(1), as amended by AJCA Section 418(a) and (b), treat capital gain distributions on REIT stock owned by foreign investors as dividends, if the foreign investor owns a sufficiently low percentage of the stock (5% or less).
Financing for assisted living facilities is undergoing a major change as REITs (real estate investment trusts) enter the market in a substantial way.
It's a good way for small investors to get into real estate, just because it is more liquid than buying an office building," says Bedford Lydon, a REIT analyst with Salomon Brothers in New York.
The subsidiary must be structured so the REIT owns less than 10% of the subsidiary's voting stock, either through nonvoting common stock or a combination of nonvoting preferred stock and debt.
It follows that local expertise and substantial experience in developing and managing the type of properties the REIT is acquiring are a big plus.
REITs are companies that own and generally manage diverse portfolios of large-scale commercial properties; some REITs finance commercial real estate.
Normally, REITs seek to maximize dividend payments to investors and often distribute dividends well in excess of Sec.
Additionally, REITs are able to offer long-term financing for maturities not always available from banks.
The merger is subject to a number of conditions, including, among other things, the approval by the holders of Class A Common Stock of the Shurgard REIT and by the shareholders of the Management Company at special shareholders' meetings currently scheduled during the first quarter of 1995.
Moreover, if no single trust owns more than 25% of the stock of a public REIT and the aggregate interest of trusts owning more than 10% of a REIT's stock does not exceed 50%, the REIT will not be subject to the restrictions imposed on earning debt-financed income.
The intense competition has also made property acquisitions more expensive, which will pose a challenge for REIT managements to find new ways to grow their portfolios and cash flow.