Accounting, finance & control

REIT my lips, no more taxes

By Dirk Brounen | November 14, 2013 | 1 min read

Since its US origination in 1960, the Real Estate Investment Trust (REIT) standard has toured around the world, and has by now been implemented in over 25 listed real estate markets all around.

Image: © Nationale Beeldbank

This means that these listed real estate investment firms are exempt from paying corporate taxes, after they incorporate the REIT criteria of profit distribution, a focus away from real estate development, and in many cases a maximization of their leverage. But now, after the fact, it is time to assess the effects of these corporate transformations.

In other words, what have been the effects of the REIT regime on the performance of listed real estate? Obviously, the flow of corporate taxes dried up, but what are the benefits that have been exchanged for this. “Why?” would be the best question to begin this examination. Why do governments around the world introduce the REIT regime? Why would they expect any effects from this conversion? And why would investors care? Dirk Brounen (Professor of Real Estate Economics at TIAS School for Business and Society), Ronald Mahieu (Professor of Finance & Innovation at TIAS School for Business and Society), and Hans Op ‘t Veld (Head of Listed Real Estate at PGGM Investments) have examined these matters internationally.

Read more

The Return Effects of Shifting Tax Regimes, Mahieu, Brounen en Op 't Veld (2013)

Grow at TIAS

At TIAS we believe in Life Long Development, continuous personal, professional and network development during and after your studies. With more knowledge, better skills and a broader network, you will be able to create more impact and be successful.

More about learning at TIAS » 

Brochure TIAS School for Business & Society

Get to know TIAS: The business school for tomorrow's leaders.