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.
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.
In another sign of the widening appeal and growing availability of commercial real estate equity and debt securities, REIT
and commercial mortgage backed securities issuance has surpassed the $1 trillion mark, according to data compiled by the National Association of Real Estate Investment Trusts.
Additionally, as a departure from the standard E&P rules, CGs within a REIT
retain their character on subsequent distribution to the shareholder.
are able to offer long-term financing for maturities not always available from banks.
4 /PRNewswire/ -- The REIT
market's ability to expand into more product sectors has resulted in a continued surge of new REIT
IPOs (initial public offerings), according to the Arthur Andersen Real Estate Services Group (RESG).