British Land

[heathmount]

Hi

British Land (BLND) is described as a REIT but yet is not on the AIC website as an investment trust. Is it not an investment trust in the strictest terms?

I see reference to "the firm became a real estate investment trust when REITs were introduced in the UK in January 2007" but wondered why AIC wouldn't show it? Maybe my assumption that the AIC shows all Investment Trusts is wrong?

heathmount

[SalvorHardin]

British Land (BLND) is described as a REIT but yet is not on the AIC website as an investment trust. Is it not an investment trust in the strictest terms?

I see reference to "the firm became a real estate investment trust when REITs were introduced in the UK in January 2007" but wondered why AIC wouldn't show it? Maybe my assumption that the AIC shows all Investment Trusts is wrong

Despite the name, REITs are not investment trusts. They are property companies with a more favourable tax treatment; they don't pay corporation tax upon the income and capital gains generated by their rental businesses, as long as they pay out at least 90% of their rental income as dividends (the shareholders become liable for income tax on the gross dividends).

Unfortunately the legislation which introduced REITs borrowed a lot from America, including the name "REIT". "Investment Trust" in America does not mean the same thing as "Investment Trust" in Britain.

[mc2fool]

Hi

British Land (BLND) is described as a REIT but yet is not on the AIC website as an investment trust. Is it not an investment trust in the strictest terms?

I see reference to "the firm became a real estate investment trust when REITs were introduced in the UK in January 2007" but wondered why AIC wouldn't show it? Maybe my assumption that the AIC shows all Investment Trusts is wrong?

heathmount

The AIC shows investment companies (the clue is in the name ), of which investment trusts are one kind, and it does, in fact, show some REITs.

However, there are different kinds of REITs.

DavidM13, who works for the AIC, explains here: viewtopic.php?p=278187#p278187