Treasury Department and the IRS Allow Public REITs to Use up to 90% Stock to Satisfy Their Distribution Requirements Through 2020

On May 4, 2020, the IRS released Revenue Procedure 2020-19 that increased the mix of stock and cash for a publicly offered REIT’s and mutual fund’s distribution requirement from the 80%/20% permanently allowed in Revenue Procedure 2017-45 to 90%/10% for distributions on or after April 1, 2020 through Dec. 31, 2020. Nareit requested this temporary increase in a letter dated March 18, 2020 so that REITs would have the election to preserve liquidity during the current pandemic crisis.

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The Nareit Developments section on reit.com provides updates of Nareit's activities and key events impacting the REIT and commercial real estate industry. Nareit is the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. Please see our Terms of Use.