Dedicated Service Teams Who Understand the Nuances of REITs
Going public as a REIT is a monumental decision. The formation and operation of a REIT is unique and each has their own special needs that set them apart from other types of companies. This, combined with an ever-changing regulatory environment, highlights the importance of selecting service providers who understand the nuances of this industry.
REITs turn to MaloneBailey because of our dedicated REIT experience, which is extensive and varied and includes in-depth knowledge of the IPO process. Highly qualified engagement teams work with REIT clients nationwide to manage and ensure compliance with complex SEC requirements.
Clients choose MaloneBailey because time and time again, we have successfully delivered unparalleled service that is cost-effective, proactive, efficient and thorough.
Our service offering includes:
SEC and NASD regulated audited annual reporting and un-audited interim reporting for reporting companies (‘34 Act compliance)
Registration statements and IPOs (‘33 Act and Regulation A compliance)
A real estate investment trust (“REIT”), generally, is a company that owns – and typically operates – income-producing real estate or real estate-related assets.
REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership – without actually having to go out and buy commercial real estate.
The income-producing real estate assets owned by a REIT may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans.
What distinguishes REITs from other real estate companies is that a REIT must acquire and develop its real estate properties primarily to operate them as part of its own investment portfolio, as opposed to reselling those properties after they have been developed.
What are the qualifications of a REIT?
Be an entity that would be taxable as a corporation but for its REIT status;
Be managed by a board of directors or trustees;
Have shares that are fully transferable;
Have a minimum of 100 shareholders after its first year as a REIT;
Have no more than 50 percent of its shares held by five or fewer individuals during the last half of the taxable year;
Paying out more at least 90 percent of its taxable income annually in the form of shareholder dividends;
Invest at least 75 percent of its total assets in real estate assets and cash;
Derive at least 75 percent of its gross income from real estate related sources, including rents from real property and interest on mortgages financing real property;
Derive at least 95 percent of its gross income from such real estate sources and dividends or interest from any source; and
Have no more than 25 percent of its assets consist of non-qualifying securities or stock in taxable REIT subsidiaries.