Key regulatory requirements
Sources of income
What are the basic source-of-income requirements for a REIT?
The main source of income for REITs is from the leasing of real estate without operating other businesses, such as hotels and hospitals. However, REITs may temporarily operate other businesses by themselves, such as hotels or hospitals, under the condition that there is a change of lessee, or the process of seeking a new lessee is ongoing, and the operation must comply with other relevant requirements.
In the case of leasing real estate for the operation of other businesses, the agreed fixed rent and the portion of rent dependent on the operating results of the lessee (variable rent) must be disclosed in the registration statement, prospectus, annual registration statement and annual report.
Asset composition
What are the basic asset composition requirements for a REIT?
Apart from…
