I heard about a concept called the 90% rule related to REITs. I'm curious to understand what this rule entails and how it applies to real estate investment trusts.
6 answers
Carolina
Sun Jan 05 2025
A REIT is mandated to distribute at least 90 percent of its taxable income annually.
FireFlyer
Sun Jan 05 2025
To be classified as a REIT, a company needs to meet certain criteria regarding its assets and income.
AzurePulseStar
Sun Jan 05 2025
Specifically, the majority of a REIT's assets must be tied to investments in real estate.
RubyGlider
Sun Jan 05 2025
This distribution must be made to shareholders in the form of dividends.
StormGlider
Sun Jan 05 2025
Additionally, the primary source of income for a REIT should stem from real estate-related activities.