umbrella-partnership real-estate investment trust. A REIT that controls and holds most of its properties through an umbrella limited partnership, as a result of which the trust can acquire properties in exchange for the limited-partnership interests in the umbrella while triggering no immediate tax obligations for certain sellers. • This is a structure that many REITs now use. — Abbr. UPREIT. [Cases: Internal Revenue 3997. C.J.S. Internal Revenue § 420.]
real estate investment trust
real-estate investment trust. A company that invests in and manages a portfolio of real estate, with the majority of the trust’s income distributed to its shareholders. • Such a trust may qualify for special income-tax treatment if it distributes 95% of its income to its shareholders. — Abbr. REIT. See investment company under COMPANY. Cf. REAL-ESTATE MORTGAGE TRUST. [Cases: Internal Revenue 3997. C.J.S. Internal Revenue § 420.]
