Generally speaking, an Islamic REIT
is a collective investment scheme in real estate in which the tenants operate permissible activities according to the Sharia," explains Dr Aznan Hasan, member of the Sharia Advisory Council of Malaysia's Central Bank and member of the Sharia Advisory Council of the Securities Commission of Malaysia.
The completion of the mergers is subject to the satisfaction of customary closing conditions, and the REIT
Merger is subject to the approval of REIT
If the property has retail tenants, the REIT
will also be concerned about rent based on the tenants' income: a percentage of gross income is acceptable, but a percentage of income net of certain expenses is not.
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.
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.
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.
such as Meditrust are able to offer operators the sales/leaseback financing alternative.
In that situation the REIT
will not be disqualified if treating the trust's REIT
stock as if it were held by the trust's beneficiaries consequently would result in the 5/50 rule not being violated.