COLL 12.6.2 Real estate investment trusts or REITs

(1) An operator, or a person marketing a fund, must not use the term “Real Estate Investment Trust” or “REIT”, or refer to a fund or otherwise hold out a fund as being a real estate investment trust, unless the fund is a QFC retail property fund that satisfies subrule (2).
(2) A QFC retail property fund is a real estate investment trust (REIT) if:
(a) the fund is a closed-ended scheme;
(b) the fund is listed in the Qatar Stock Exchange or another regulated exchange;
(c) the fund’s constitutional document and prospectus state that:
(i) if the fund invests in vacant land for the purpose of development, the total value of those investments in vacant land must not exceed 20% of the value of the fund’s net assets;
(ii) except to enable the fund to meet with its liquidity requirements, the fund will not borrow, or enter into any other transaction that will result in a financial obligation, if the fund’s total borrowings or obligations will exceed 50% of the value of its net assets;
(iii) the fund will distribute to unitholders at least 80% of its audited annual net income (adjusted to exclude any fair value capital gains).
Guidance
1 For a REIT that holds an immovable through an intermediate holding vehicle or vehicles, the timing of distributions of income may depend on the law of the jurisdiction where the vehicle or vehicles are established.
2 Nothing in this rule prevents a REIT from distributing more than the percentage stated in its constitutional document and prospectus. If the REIT proposes to distribute less than that percentage, rule 12.6.6 would apply and prior approval from unitholders would be required.

Note A REIT must be a QFC collective investment company or a QFC collective investment trust (see rule 12.6.3). A REIT must be primarily aimed at investments in income-generating immovables (see definition of property fund).
(3) If a REIT fails to satisfy a requirement in subrule (2) or in its constitutional document and prospectus, the operator and the independent entity of the REIT must notify the Regulatory Authority and the relevant exchange immediately, but within 1 business day. The notice must state any action that has been, or will be, taken to correct the breach.
Amended by QFCRA RM/2019-5 (as from 1st July 2019)
Amended by QFCRA RM/2020-6 (as from 15th October 2020).