There is significant interest in REITs
across the region from institutional and private investors," says Sylvain Vieujot, chairman of Equitativa.
II will continue as the surviving entity and REIT
II's operating partnership will merge with and into REIT
I's operating partnership, with REIT
I's operating partnership continuing as the "surviving partnership".
Owners and developers seeking capital from REITs
should be aware that bringing in a REIT
partner will result in some requirements and restrictions that otherwise would not exist.
came under fire in March after their stock price spiked unusually high days before a sell-off of a Yokohama building, housing the high-end U.
The AJCA added safe harbor rules t-or real estate sales by timber REITs
Banks," says McAlister, "haven't been doing the type of financing that REITs
are willing to do.
From a tax standpoint, REITs
, like other real estate investments, have an inherent advantage.
A qualified REIT
subsidiary is not treated as a separate corporation, and the subsidiary's assets, liabilities, income, deductions and credits are considered to be held by the REIT
With so much new money pouring into REITs
and such a spectacular rise in share prices, any veteran investor is likely to think it's time for smart money to start looking elsewhere.
Like most investors in non-traded REITs
, KBS REITs
were sold with typical promises of price stability, steady dividends, and steady returns.
Incurring such debt allows an owner to yield more cash flow from an investment, but REITs
are under pressure to pursue less aggressive financing strategies because of their limited tolerance for risk.
Additionally, as a departure from the standard E&P rules, CGs within a REIT
retain their character on subsequent distribution to the shareholder.