Which of the following is not a consideration for
Investing in real estate investment trusts (REITs)?

Question

Quizplus · Accepted Answer

The federal tax rate paid by the trust is not a consideration for investing in REITs because by law, REITs must distribute at least 90% of their taxable income to shareholders in the form of dividends, which means they are not subject to corporate income tax. Therefore, the federal tax rate paid by the trust is not a concern as it has already been distributed to shareholders. The other options, such as fluctuations in dividend payments, excessive use of debt financing, and fluctuating interest rates, are important considerations when investing in REITs.

Which of the Following Is Not a Consideration for