A South African REIT – is a listed property investment vehicle that is similar to internationally recognised REIT structures from around the world. Listed Company REITs or Trust REITs are publically traded on the JSE REIT board and qualify for the REIT tax dispensation.
A JSE-listed SA REIT must:
- own at least R300 million of property
- keep its debt below 60% of its gross asset value
- earn 75% of its income from rental or from property owned or investment income from indirect property ownership
- have a committee to monitor risk
- not enter into derivative instruments that are not in the ordinary course of business
- pay at least 75% of its taxable earnings available for distribution to its investors each year