Monday, 19 March 2018 3:32:37 AM

Advanced Search

Search: Section:
Category: Sub-Category:
Tuesday, 28 June 2011 18:15

G-REITs must : -

Maintain at least 45% equity in their properties ie they can only leverage 55% Loan-to-Value ratio.

Distribute at least 90% of distributable profits to shareholders, and

Derive at least 75% of their income from real estate (and at least 75% of their assets must be real estate), and

Only trade a maximum of 50% of the REIT's properties in any one 5 year period ie the entire portfolio can be turned over in 10 years, and

Be a corporation listed on a recognized stock exchange, and

Have an office and management registered in Germany’ and

Be a real estate business that acquires, holds and administers the operation of properties ie NOT trading, and

Only have one class of voting shares, and

Not be dual-resident corporations, and

Not be privately held corporations, and

No one shareholder can own more than 10%

Not issue preference shares.

Not provide real estate services except through ownership of a bespoke REIT service company, which can contribute a maximum of 20% of a G-REIT's income.

G-REITs (REIT Aktiengesellschaft or REIT-AG) are exempt from Corporate Income Tax care of the REIT-Gesetz law on German real estate stock companies with publicly listed shares.

Real estate companies that convert to GREITs must pay a 20% tax on unrealized capital gains.

Since 2009 personal dividends are taxed at flat rate of 25% plus applicable Solidarity Supplements and Church taxes.

G REIT cannot invest in residential property built before 2006.

The Deutsche Borse set up two separate indexes for G-REITs: the “REIT All Share Index”; and the “REIT Selection Index.”


Last Updated on Tuesday, 03 January 2012 06:56