Chris Mangin, Jr., partner, tax, at Paul Hastings LLP, sat down for a video interview at Nareit’s REITwise: 2026 Educational Conference in Hollywood, Florida, March 24-26.
Mangin explained that cross-border tax has become increasingly important for REITs due to a surge in demand for capital—especially for infrastructure, AI, and data center projects. With public markets sometimes limiting large capital raises, REITs are turning to private capital, joint ventures, and institutional funding, much of it coming from overseas investors and sovereign wealth funds. These investors require deal structures that preserve key tax benefits, particularly Section 892 exemptions.
Mangin highlighted recent Treasury actions that could support inbound investment. The reversal of the controversial domestically controlled REIT rule removes a barrier for foreign investors, while proposed Section 892 regulations aim to clarify when investors maintain tax-exempt status. However, some aspects—such as guidance around “effective control” and standard minority protections—have created uncertainty in the market, though adjustments are expected.
On broader policy trends, Mangin noted that while proposals like Section 899 initially alarmed investors, they appear to have been more of a negotiating tactic. Overall, he sees a constructive government approach focused on attracting foreign capital, recognizing its importance in funding large-scale U.S. real estate and technology infrastructure investments.