Extract to table

Key REIT Asset Tests — IRC § 856(c)(4) The REIT asset tests are set forth in IRC § 856(c)(4) and must be satisfied at the close of each calendar quarter

At the close of each calendar quarter, at least 75% of the value of the REIT's total assets must consist of "real estate assets" (as defined in IRC § 856(c)(5)(B)), cash and cash items (including receivables), and government securities

The value of the REIT's securities of one or more taxable REIT subsidiaries, in the aggregate, must not exceed 20% of the value of the REIT's total assets at the close of each calendar quarter

Income Tests — IRC § 856(c)(2) and (3) The REIT gross income tests are set forth in IRC § 856(c)(2) and (3) and must be satisfied for each taxable year

20% TRS Asset Test — IRC § 856(c)(4)(B)(ii) The primary asset-test constraint on the proposed TRS structure is the 20% TRS asset test of IRC § 856(c)(4)(B)(ii), which provides that the value of the REIT's securities of one or more taxable REIT subsidiaries, in the aggregate, must not exceed 20% of the total value of the REIT's assets at the close of each calendar quarter

75% Asset Test — IRC § 856(c)(4)(A) The 75% asset test requires that at least 75% of the value of Fairwater's total assets at the close of each calendar quarter must consist of qualifying real estate assets, cash and cash items, and government securities