Asset Tests. At the close of each quarter during each taxable year, a REIT must satisfy four tests under IRC §856(c)(4). For tax years beginning on or before December 31, 2000:
Asset Tests. At least 75% of the value of the Company's total assets shall be represented by cash or cash items (including certain receivables), government securities, "real estate assets" (including loans secured by real estate interests) or, in certain cases, temporary investments as defined in or permitted by the Code. In addition to the foregoing requirement, the value of any one issuer's securities owned by the Company shall not exceed 5% of the value of the Company's total consolidated assets, and the Company shall not own more than 10% of any one issuer's outstanding voting securities (except for its interests in any qualified REIT subsidiary). Prior to any acquisition or disposition of the Company's assets, the investment compliance officer (or qualified REIT counsel, as applicable) shall review such proposed acquisition or disposition to determine that such acquisition or disposition will not cause the Company to fail to qualify as a REIT for federal income tax purposes as a result of the foregoing asset tests.
Asset Tests. At the close of each calendar quarter of its taxable year, the Company must also satisfy the following five tests relating to the nature of its assets. For purposes of each of these tests, the Company’s assets are deemed to include the assets of any disregarded subsidiary and its share of the assets of any subsidiary partnership, such as the Operating Partnership. • At least 75% of the value of the Company’s total assets must be represented by some combination of “real estate assets,” cash or cash items, including certain receivables and, in certain circumstances, foreign currencies, U.S. government securities, and, under some circumstances, stock or debt instruments purchased with new capital. For this purpose, “real estate assets” include interests in real property, such as land, buildings, leasehold interests in real property, stock of corporations that qualify as REITs, some kinds of mortgage-backed securities and mortgage loans, and debt instruments issued by publicly offered REITs, personal property leased in connection with a lease of real property to the extent that rent attributable to such personal property meets the 15% test described under “— Income Tests” above to qualify as “rents from real property” for purposes of the 75% gross income test, and debt secured by a mortgage on both real and personal property if the fair market value of the personal property securing the debt does not exceed 15% of the total fair market value of all property securing the debt. • The aggregate value of all securities of TRSs the Company holds may not exceed 20% of the value of its total assets. • The aggregate value of all debt instruments the Company holds of publicly offered REITs, to the extent such debt instruments are not secured by real property or interests in real property (and, therefore, would not qualify as “real estate assets” but for having been issued by publicly offered REITs), may not exceed more than 25% of the value of its total assets. • The value of any one issuer’s securities owned by the Company may not exceed 5% of the value of its assets. This asset test does not apply to securities of TRSs or to any security that qualifies as a “real estate asset.” • The Company may not own more than 10% of any one issuer’s outstanding securities, as measured by either voting power or value. This asset test does not apply to securities of TRSs or to any security that qualifies as a “real estate asset.” In addition, solely for purposes of the 10% value te...
Asset Tests. At the close of each calendar quarter of Ventas’s taxable year, Ventas must also satisfy certain tests relating to the nature and diversification of its assets. First, at least 75% of the value of Ventas’s total assets must be represented by real estate assets, cash, cash items and U.S.
Asset Tests. To qualify as a REIT, we also must satisfy the following asset tests at the end of each quarter of each taxable year. First, at least 75% of the value of our total assets must consist of: • cash or cash items, including certain receivables and money market funds and, in certain circumstances, foreign currencies; • government securities; • interests in real property, including leaseholds, options to acquire real property and leaseholds and personal property, to the extent such personal property is leased in connection with real property and rents attributable to such personal property are treated as “rents from real property”; • interests in mortgage loans secured by real property; • shares in other REITs and debt instruments issued by “publicly offered REITs”; and • investments in shares or debt instruments during the one-year period following our receipt of new capital that we raise through equity offerings or public offerings of debt with at least a five-year term. Second, of our investments not included in the 75% asset class, the value of our interest in any one issuer’s securities may not exceed 5% of the value of our total assets (the “5% asset test”). Third, of our investments not included in the 75% asset class, we may not own more than 10% of the voting power or 10% of the value of any one issuer’s outstanding securities (the “10% vote test” and “10% value test,” respectively). Fourth, no more than 25% (20% for taxable years beginning after December 31, 2017) of the value of our total assets may consist of the securities of one or more TRSs. Fifth, no more than 25% of the value of our total assets may consist of the securities of TRSs, other non-TRS taxable subsidiaries and other assets that are not qualifying assets for purposes of the 75% asset test (the “25% securities test”). Sixth, not more than 25% of the value of our total assets may consist of debt instruments issued by “publicly offered REITs” to the extent not secured by real property or interests in real property. For purposes of the 5% asset test, the 10% vote test and the 10% value test, the term “securities” does not include shares in another REIT, debt of “publicly offered REITS”, equity or debt securities of a qualified REIT subsidiary or a TRS, mortgage loans that constitute real estate assets, or equity interests in a partnership. The term “securities,” however, generally includes debt securities issued by a partnership or another REIT, except that for purposes of the 10% value t...
Asset Tests. At the close of each quarter of its taxable year, Jamboree Office REIT must satisfy three tests relating to the nature of its assets. First, at least 75% of the value of Jamboree Office REIT's total assets must be represented by real estate assets, cash, cash items, and government securities. Second, not more than 25% of Jamboree Office REIT's total assets may be represented by securities other than those in the 75% asset class. Third, of the investments included in the 25% asset class, the value of any one issuer's securities owned by Jamboree Office REIT may not exceed 5% of the value of Jamboree Office REIT's total assets, and Jamboree Office REIT may not own more than 10% of any one issuer's outstanding voting securities. After initially meeting the asset tests at the close of any quarter, Jamboree Office REIT will not lose its status as a REIT if it fails to satisfy the asset tests at the end of a later quarter solely by reason of changes in asset values. If the failure to satisfy the asset tests results from an acquisition of securities or other property during a quarter, the failure can be cured by disposition of sufficient nonqualifying assets within 30 days after the close of that quarter. Jamboree Office REIT intends to maintain adequate records of the value of its assets to ensure compliance with the asset tests, and to take such action within 30 days after the close of any quarter as may be required to cure any noncompliance.
