Real estate investment trust (REIT)
For a given taxation year, a trust that is resident in Canada throughout the year, if:
- the FMV of all non-portfolio property that is qualified property held by the trust is at least equal to 90% of the FMV of all non-portfolio property held by the trust;
- at least 90% of the trust's determined gross revenue for the year is derived from rent from immovable property, interest, dispositions of immovable property that is capital property, dividends or royalties or from dispositions of eligible resale property;
- at least 75% of the trust's determined gross revenue for the year is derived from rent from immovable property, interest payable on debts secured by hypothecs on immovable property, or from dispositions of immovable property that is capital property;
- the total FMV of certain property (immovable property that is capital property, sums of money, bankers' acceptances, deposits with a credit union or eligible resale property) that the trust holds throughout the year must not be less than 75% of the equity value of the trust at that time; and
- the investments in the trust are listed or traded on a stock exchange or other public market.
Note
Qualified property is property that is held by a REIT, and that constitutes non-portfolio property. It must be one of the following types of property:
- immovable property that is capital property, eligible resale property, indebtedness of a Canadian corporation represented by a bankers' acceptance, money and debt obligations or a deposit with a savings and credit union;
- a security of a subject entity, if:
- the entity derives 90% of its determined gross revenue from maintaining, improving, leasing or managing immovable properties of the trust, or
- the entity holds no property other than titles of ownership in immovable properties that the trust holds solely or in co-ownership;
- property that is ancillary to the activity of the trust and that consists in the trust earning:
- rent from immovable properties,
- capital gains from dispositions of immovable properties, other than a share of a taxable Canadian corporation, a capital or income interest in a SIFT trust, an interest in a SIFT partnership or a capital or income interest in a REIT.