REAL-ESTATE INVESTMENT TRUST
real-estate investment trust.A company that invests in and manages a portfolio of real estate,
with the majority of the trust’s income distributed to its shareholders. • Such a trust may qualify
for special income-tax treatment if it distributes 95% of its income to its shareholders. — Abbr.
REIT. See investment company under COMPANY. Cf. REAL-ESTATE MORTGAGE TRUST.
[Cases: Internal Revenue 3997. C.J.S. Internal Revenue § 420.]
umbrella-partnership real-estate investment trust.A REIT that controls and holds most of its
properties through an umbrella limited partnership, as a result of which the trust can acquire
properties in exchange for the limited-partnership interests in the umbrella while triggering no
immediate tax obligations for certain sellers. • This is a structure that many REITs now use. —
Abbr. UPREIT. [Cases: Internal Revenue 3997. C.J.S. Internal Revenue § 420.] [Blacks Law 8th]