Common use of Asset Tests Clause in Contracts

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: (1) at least 75 percent of the value of a REIT’s total assets must consist of real estate assets, cash and cash items (including receivables) and Government securities; (2) not more than 25 percent of the value of a REIT’s total assets may consist of securities, other than those includible under (1) above; (3) not more than 5 percent of the value of a REIT’s total assets may consist of securities of any one issuer, other than those securities includible under (1) above; and (4) not more than 10 percent of the outstanding voting securities of any one issuer may be held by the REIT, other than those securities includible under (1) above. For tax years beginning after December 31, 2000: (1) at least 75 percent of the value of a REIT’s total assets must consist of real estate assets, cash and cash items (including receivables) and Government securities; (2) not more than 25 percent of the value of a REIT’s total assets may consist of securities, other than those includible under (1) above; (3) not more than 20 percent4 of the value of a REIT’s total assets may consist of securities of one or more taxable REIT subsidiaries, as defined under IRC §856(l) (“TRS”); (4) except with respect to a TRS and securities includible under (1) above (i) no more than 5 percent of the value of a REIT’s total assets may consist of securities of any one issuer; (ii) a REIT may not hold securities possessing more than 10 percent of the total voting power of the outstanding securities of any one issuer; and (iii) a REIT may not hold securities having a value of more than 10 percent of the total value of the outstanding securities of any one issuer (the “Single Issuer Security Limitation”). The following assets are not treated as “securities” held by a REIT for purposes of the 10 percent value test described in (4)(iii) above:

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: (1) at least 75 percent of the value of a REIT’s total assets must consist of real estate assets, cash and cash items (including receivables) and Government securities; (2) not more than 25 percent of the value of a REIT’s total assets may consist of securities, other than those includible under (1) above; (3) not more than 5 percent of the value of a REIT’s total assets may consist of securities of any one issuer, other than those securities includible under (1) above; and (4) not more than 10 percent of the outstanding voting securities of any one issuer may be held by the REIT, other than those securities includible under (1) above. For tax years beginning after December 31, 2000: (1) at least 75 percent of the value of a REIT’s total assets must consist of real estate assets, cash and cash items (including receivables) and Government securities; (2) not more than 25 percent of the value of a REIT’s total assets may consist of securities, other than those includible under (1) above; (3) not more than 20 percent4 of the value of a REIT’s total assets may consist of securities of one or more taxable REIT subsidiaries, as defined under IRC §856(l) (“TRS”); (4) except with respect to a TRS and securities includible under (1) above (i) no more than 5 percent of the value of a REIT’s total assets may consist of securities of any 4 Effective for tax years beginning after July 30, 2008, not more than 25 percent of the value of a REIT’s total assets may consist of securities of one or more taxable REIT subsidiaries. one issuer; (ii) a REIT may not hold securities possessing more than 10 percent of the total voting power of the outstanding securities of any one issuer; and (iii) a REIT may not hold securities having a value of more than 10 percent of the total value of the outstanding securities of any one issuer (the “Single Issuer Security Limitation”). The following assets are not treated as “securities” held by a REIT for purposes of the 10 percent value test described in (4)(iii) above:

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: (1) at least 75 percent of the value of a REIT’s total assets must consist of real estate assets, cash and cash items (including receivables) and Government securities; (2) not more than 25 percent of the value of a REIT’s total assets may consist of securities, other than those includible under (1) above; (3) not more than 5 percent of the value of a REIT’s total assets may consist of securities of any one issuer, other than those securities includible under (1) above; and (4) not more than 10 percent of the outstanding voting securities of any one issuer may be held by the REIT, other than those securities includible under (1) above. For tax years beginning after December 31, 2000: (1) at least 75 percent of the value of a REIT’s total assets must consist of real estate assets, cash and cash items (including receivables) and Government securities; (2) not more than 25 percent of the value of a REIT’s total assets may consist of securities, other than those includible under (1) above; (3) not more than 20 percent4 of the value of a REIT’s total assets may consist of securities of one or more taxable REIT subsidiaries, as defined under IRC §856(l) (“TRS”);; 4 Effective for tax years beginning after July 30, 2008, not more than 25 percent of the value of a REIT’s total assets may consist of securities of one or more taxable REIT subsidiaries. (4) except with respect to a TRS and securities includible under (1) above (i) no more than 5 percent of the value of a REIT’s total assets may consist of securities of any one issuer; (ii) a REIT may not hold securities possessing more than 10 percent of the total voting power of the outstanding securities of any one issuer; and (iii) a REIT may not hold securities having a value of more than 10 percent of the total value of the outstanding securities of any one issuer (the “Single Issuer Security Limitation”). The following assets are not treated as “securities” held by a REIT for purposes of the 10 percent value test described in (4)(iii) above: