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REIT OVERVIEW
Congress created REITs in the United States in 1960 as a way to make investments in large-scale, income-producing real estate accessible to all investors in the same way they typically invest. Prior to the creation of listed real estate equities, access to the investment returns of commercial real estate equity as a core asset was available only to institutions and wealthy individuals having the financial wherewithal to undertake direct real estate investment.
In order for a company to qualify as a REIT in the United States, it must comply with certain ground rules specified in the Internal Revenue Code. These qualifications include investing at least 75 percent of total assets in real estate, deriving at least 75 percent of gross income as rents from real property or interest from mortgages on real property, and distributing annually at least 90 percent of taxable income to shareholders in the form of dividends.
>Types of REITS
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