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.
are companies that own and generally manage diverse portfolios of large-scale commercial properties; some REITs
finance commercial real estate.
seek to maximize dividend payments to investors and often distribute dividends well in excess of Sec.
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.