COLL 12.6.5 Extra constitution requirements—REITs

(1) The constitutional document of a REIT must state:
(a) that the fund is a real estate investment trust;
(b) the exchange where the fund is listed;
(c) the percentage (at least 80%) of its audited annual net income (adjusted to exclude any fair value capital gains) that the fund intends to distribute to unitholders; and
(d) whether the fund is a collective investment company or a collective investment trust.

Note Because a REIT is a QFC retail property fund, its constitutional document must also include the matters set out in rule 12.2.1, such as a statement that the fund invests in at least 3 immovables that generate recurrent rental income.
(2) The income distribution policy required to be stated in the REIT's constitutional document must include:
(a) the REIT's proposed distribution date or dates;
(b) the person responsible for determining any adjustments (such as evaluation surplus and gains on disposal of immovables) to distributable income;
(c) the basis for any adjustments mentioned in paragraph (b); and
(d) if relevant, the procedures for calculating, paying and accounting for income equalisation.

Note For the other statements about income distribution that the constitutional document of a REIT must contain, see rule S2.10.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)