What hasn't been talked about is the amount of REIT
IPOs that have happened that have essentially replaced all the REITs
that have gone private," Case said.
857(b)(5), the fraction's numerator is REIT
taxable income computed without regard to (1) the dividends-paid deduction (DPD); (2) the deduction for the Sec.
The health care REITs
see assisted living as one part of the continuum of health care to be provided to the elderly -and a natural business opportunity for nursing home operators.
Lately, the biggest block of REITs
, 22% of the total now trading, is in apartment complexes.
may not derive more than 30% of its gross income from the sale or other disposition of stock or securities held for less than six months, property in prohibited transactions or most real property held for less than four years.
Thus, implicit in the premium over current asset value that people are now paying for REITs
is the anticipation of an upward movement in rental rates some time in the next three to four years.
CMBS activity has climbed 10-fold in 10 years, while the REIT
industry has seen its combined equity market capitalization soar from $57 billion in 1995 to $337.
The analysis indicates that the best investor in REIT
shares is an individual in a high tax bracket who desires a high after-tax cashflow yield.
We, like most of our fellow REITs
, are looking at the full continuum of long-term care and its potential for growth.
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.
Rating upgrades for both office and retail REITs
are a possibility for this year as Fitch projects Positive Rating Outlooks for multifamily, lodging and office REITs
, along with Stable Outlooks for the industrial, retail, health care and mortgage REIT
One of them has been the amount of merger and acquisition activity in 2005 in which a number of REITs
were purchased at premiums to their share price, a strong indication that REIT
stock pricing has further room to grow.