Real Estate Investment Trust (REIT)

Abbreviation for Real Estate Investment Trust. Introduced in the US since the 1960s. Tax-exempt investment companies in the legal form of a listed stock corporation. Taxation only takes place at the shareholder level (transparent taxation). Also in other countries, such as B. France (SIIC), introduced and subject to certain prerequisites: certain minimum proportion of shares listed on the stock exchange (e.g. at least 25 %), certain minimum distribution (usually around 90%); Restriction of the beneficiary investments to acquisition and management of real estate Limitation of Permissible Disposals. The introduction is also under discussion in Germany. At the beginning of 2005 the “Initiative Finanzplatz Deutschland”, of which the BMF is a member, published a final report with key points.