October 1986 President Reagan signs the Tax Reform Act of 1986. Among its real estate provisions, there are several new rules that prevent taxpayers from using partnerships to shelter earnings from other sources. Additionally, a number of REIT simplification changes take effect, including one that for the first time allows REITs to be internally advised and managed.
1969-1974 The initial REIT expansion takes place as total industry assets increase from about $1 billion to more than $21 billion, primarily fueled by mortgage REITs engaged in land development and construction financing. REIT balance sheet leverage soars. This first high point ends when a severe recession begins after the 1973 oil embargo. Mortgage REITs are hit particularly hard and many companies enter bankruptcy proceedings, liquidate or are sold.
November 1976 As part of the Tax Reform Act of 1976, President Ford signs into law the first package of REIT simplification amendments, most notably allowing REITs to be established as corporations in addition to business trusts.
1980s During this time there is a proliferation of real estate tax-sheltered partnerships that raise billions of dollars in private placements. REITs find it hard to compete for capital since they were (and still are) structured so that tax losses cannot be "passed through" to REIT shareholders.
March 1970 In another sign of the growth of the industry, Kenneth Campbell (currently a managing director with ING Clarion Real Estate Securities) launchesRealty Trust Review as the first periodical devoted exclusively to public real estate securities. The publication exists today as an email newsletter called REITWrap.
August 1993 As part of the Omnibus Budget Reconciliation Act of 1993, President Clinton signs into law a change to the "Five or Fewer" rule that makes it easier for pension plans to invest in REITs.
June 2003 Ibbotson Associates releases results of its pioneering research with respect to the comparative performance of REIT and direct real estate investment in diversified investment portfolios. Ibbotson's analysis clearly demonstrates the complementary nature of both public and private forms of commercial real estate investment in long-term institutional portfolios.
November 1991 Kimco Realty Corporation (NYSE: KIM) concludes the first successful equity REIT IPO in many years. This step marks the beginning of the modern REIT era and sets the stage for the resurgence of the REIT industry.
Visit Kimco's website.
June 1965 Continental Mortgage Investors becomes the first REIT to be listed on the New York Stock Exchange.
View a list of REITs listed on the NYSE.
Sept. 14, 2010 REITs and NAREIT celebrate their 50th anniversaries, as recognized by a U.S. Congressional Resolution.
November 1997 AMB Property Corporation (NYSE: AMB) completes the first successful roll-up of a group of separately managed private portfolios into a single, publicly traded REIT and introduces the private fund model to the industry.
Visit AMB's website.
January 1999 NAREIT introduces real-time pricing as a major enhancement of the NAREIT Real-Time REIT Index.
View FTSE NAREIT U.S. Real Estate Index real-time data.