Question

In order to qualify as a REIT, A) at least 90% of the assets must be invested in real-estate related assets. B) a mortgage REIT must have at least 75% of the assets in government-insured mortgages. C) at least 75% of the income must be paid out as dividends to investors. D) at least 75% of the assets must be invested in real-estate related assets, cash, and U.S. government securities.

Answer 1

Answer:

D) at least 75% of the assets must be invested in real-estate related assets, cash, and U.S. government securities.

Explanation:

A Real Estate Investment Trust (REIT) are businesses that invest in real estate property and provide dividends to their stockholders. They are similar to mutual funds, except that instead of investing in stocks or securities, they invest in real estate properties. At least 90% of taxable income must be distributed as dividends.