Basic criteria for UK REITs

Basic criteria for UK REITs

Definition

What is a UK REIT?

REIT (Real Estate Investment Trust) is a company that invests in income-generating properties or related assets, allowing investors to access the real estate market without the need to directly purchase, manage or finance these properties. They were introduced by the 1960 Act to make it easier for smaller investors to invest in real estate, allowing them to invest in commercial real estate portfolios in the same way as buying shares on the stock exchange. In the United States, REITs have a total of more than $4 trillion in gross assets, of which about $2.5 trillion are REIT public assets.

Investing in REITs in England provides an attractive opportunity for Polish investors to get involved in the commercial real estate market by offering access to profitable large-scale investments. The main benefits arising from such investments include potentially higher rates of return, the possibility of diversifying the investment portfolio and protection against inflation thanks to the natural protection provided by real estate. In addition, a Polish REIT operating under English law allows Polish investors to use the advantages of the British legal system, which is well-developed and stable, while using their knowledge of the Polish market. Such a combination makes it possible to effectively invest in real estate, while using experience in managing investments and the potential of foreign markets.

Definicja

What is a UK REIT?

REIT (Real Estate Investment Trust) is a company that invests in income-generating properties or related assets, allowing investors to access the real estate market without the need to directly purchase, manage or finance these properties. They were introduced by the 1960 Act to make it easier for smaller investors to invest in real estate, allowing them to invest in commercial real estate portfolios in the same way as buying shares on the stock exchange. In the United States, REITs have a total of more than $4 trillion in gross assets, of which about $2.5 trillion are REIT public assets.

Investing in REITs in England provides an attractive opportunity for Polish investors to get involved in the commercial real estate market by offering access to profitable large-scale investments. The main benefits arising from such investments include potentially higher rates of return, the possibility of diversifying the investment portfolio and protection against inflation thanks to the natural protection provided by real estate. In addition, a Polish REIT operating under English law allows Polish investors to use the advantages of the British legal system, which is well-developed and stable, while using their knowledge of the Polish market. Such a combination makes it possible to effectively invest in real estate, while using experience in managing investments and the potential of foreign markets.

Rules and conditions for REITs in the United Kingdom

Basic requirements for UK REITs

In order to be classified as a REIT in England, the company must meet a number of requirements, including:

Hold shares listed on the stock exchange recognised by regulatory authorities.

Distribute at least 90% of its profits from tax-exempt income to shareholders.

At least 75% of the REIT’s gross assets and 75% of its profits must originate from the rental of the real estate.

A REIT may not be a closed company, which means that it cannot be controlled by five or fewer investors. The exception to this rule is when 35% of the company’s shares are held by the public.

A REIT must hold at least three properties, and no individual property may account for more than 40% of the total value of the fund’s assets. The exception to this is when a REIT holds at least one commercial property worth at least GBP 20 million.

Rules and conditions for REITs in the United Kingdom

Basic requirements for UK REITs

In order to be classified as a REIT in England, the company must meet a number of requirements, including:

Hold shares listed on the stock exchange recognised by regulatory authorities.

Distribute at least 90% of its profits from tax-exempt income to shareholders.

At least 75% of the REIT’s gross assets and 75% of its profits must originate from the rental of the real estate.

A REIT may not be a closed company, which means that it cannot be controlled by five or fewer investors. The exception to this rule is when 35% of the company’s shares are held by the public.

A REIT must hold at least three properties, and no individual property may account for more than 40% of the total value of the fund’s assets. The exception to this is when a REIT holds at least one commercial property worth at least GBP 20 million.