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Real Estate

Real Estate Investment Trusts - Reit

How does a company become classified as a real estate investment trust in the United States?

In order to be classified as a REIT, a company must invest at least 75% of its assets in real estate; make at least 75% of gross income from collecting rents from real property it owns, from earning interest on mortgages financing real property, or from selling real estate; must distribute at least 90% of its taxable income in the form of shareholder dividends each year; must be legally organized as a corporation; must have a board of directors or trustees; and must have a minimum of 100 shareholders, with no more than 50 percent of its shares held by five or fewer individuals.



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