Real Estate Investment Trusts (REITs)
Few sectors have suffered higher casualties as
a result of the sustained economic crisis than those inflicted
across the real estate sector and, with it, the collateral damage
to REITs. Residential and commercial properties alike have
experienced pricing drops and market stagnation around the
globe. As a result, REITs are in the unfortunate position of
having to relinquish their investments in mortgages, properties and
related real estate securities at the risk of their balance
sheet.
To complicate matters further, REITs are also
struggling with the income distribution compliance rules,
particularly when the income is “phantom income” and the assets of
the REIT are either illiquid or significantly devalued in this
environment. Qualified assets are increasingly harder to come
by, which places more pressure on growing the balance sheet when
the majority of assets are underperforming.
SNR Denton understands the challenges facing
REITs. We have a world class reputation in the real estate
sector and an acute ability to leverage market turmoil to mine new
portfolio opportunities around the world. We have advised a
diverse profile of REIT clients – including publicly-traded,
private and non-US REITs on complex REIT structures and
transactions. Ours is a multidisciplinary approach,
leveraging the expertise across our full range of sectors and
service lines to provide clients with solutions that address their
regulatory and compliance needs while also meeting their business
objectives.
Areas of Focus:
- Formation
- Financing and
Mergers and Acquisitions
- IPO
- Tax
- Regulatory
Compliance
- Real Estate