Hawaii Senate Passes Temporary Disallowance of REIT Dividends Paid Deduction

03/09/2020

On March 3, the Hawaii Senate unanimously approved SB 2697, which would temporarily disallow the REIT DPD, except for REITs “where 100% of the [REIT’s] real property is used to provide affordable housing in [Hawaii].” “Affordable housing” is not defined.

The bill will now be considered by the Hawaii House of Representatives, and Nareit will continue to oppose this legislation as it has done with respect to similar legislation over the past six years.

(Contact: Gladys Quinto Marrone at gmarrone@nareit.com)

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What's a REIT?

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

Why Invest in REITs

REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. These are the characteristics of real estate investment.

About Nareit

Nareit serves as the worldwide representative voice for REITs and real estate companies with an interest in U.S. real estate. Nareit’s members are REITs and other real estate companies throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses.