In order for a company to qualify as a Real Estate Investment Trust there is a number of different requirements and criteria's the company has to meet. A Real Estate Investment Trust is known to be a company that owns different sections of property and real estate. These companies are invested in those properties in hopes to make a profitable return. Real Estate Investment Trust is basically the financial behind the real estate process. Using stock and shares REIT´s provides an opportunity for investors to gain a capital revenue from real estate without purchasing any actual real estate property. The Real Estate Investment Trust Act of 1960 is one of the basic requirements to be considered a Real Estate Investment Trust. State that if the Real Estate Investment Trust follows the provided guidelines those corporations and companies did not have to pay income tax and gains capital taxes. Overall, REITs pays out around 90% of its annual revenue to stockholders and corporate heads. The purpose of this paper is to analyze a specific Real …show more content…
In these sorts of cases the property isn't being sold yet rented. If these properties were named stock, at that point all upkeep and repairs would expense as brought about, and no deterioration would be perceived (Wen Peng & Newell, 2012, p. 77). Be that as it may, as property, plant, and gear, support and repairs would be promoted, and devaluation would be perceived over the life of the advantage. This dramatically affects the asset report, and the main issue. Another issue is the reasonable portrayal of the budgetary circumstance of the organization (Coumarianos, 2017). If these benefits are deteriorated, at that point it suggests that their esteem is going down after some time. This isn't case with these properties, the market esteem changes and ordinarily goes up instead of