IRS Loosens Requirements on REIT Cash to Promote Liquidity

IRS issues guidance allowing publicly traded real estate investment trusts and regulated investment companies to limit the amount of cash on hand to distribute to shareholders.

• IRS says the move will help REITs “conserve capital and thereby enhance their liquidity”
• The guidance requires at least 10% of the aggregate distribution be available in cash, down from 20%
• NOTE: REITs are required to distribute at least 90% of their taxable income to its shareholders each year

To contact the reporter on this story:
Laura Davison in Washington at ldavison4@bloomberg.net

To contact the editors responsible for this story:
Joe Sobczyk at jsobczyk@bloomberg.net ...