NAME__________________________________________TIME:_____________SCORE:_____

I. TRUE or FALSE. Write T if TRUE and F if FALSE.

___1. Real Estate Investment Trust is a stock corporation established principally for the purpose of
owning income-generating real estate assets.
___2. A corporation becomes a REIT and qualified to avail of the incentives and privileges of the REIT
Act when its REIT Plan is rendered effective by the Commission and its listing as a REIT is approved by
the stock exchange.
___3. Republic Act (R.A.) No. 9856 An Act Providing the Legal Framework for Real Estate Investment
Trust and For Other Purposes lapsed into law on December 17, 2009
___4. A REIT is also required to distribute 90% of its income to investors in the form of regular
dividends
___5. The REIT allows investors especially small or retail investors to participate in the ownership of
income-generating real estate.
___6. A REIT is entitled to several tax incentives, so much so that the Department of Finance has
warned that the government stands to lose billions of pesos due to the passing of the REIT Act and IRR.
___7. A REIT DO NOT have the powers of a corporation under the Corporation Code
___8. A REIT is NOT required to distribute at least ninety (90%) percent of its distributable income
every year so investors get regular dividends.
___9. A REIT is NOT subject to regular corporate income tax but not minimum corporate income tax
(MCIT);
___10. A REIT company DO NOT have the power to Appoint a Fund Manager, a Property Manager
___11. A REIT company has the power to Ensure that financial and economic aspects are professionally
managed
___12. A REIT company may determine its annual borrowing limit.
___13. A REIT company DO NOT have the power to Formulate dividend policies
___14. A REIT company may implement the appropriate policies and conduct due diligence reviews.
___15. A REIT shall be subject to regular corporate income tax but not minimum corporate income tax
(MCIT).
___16. Republic Act 9856 is considered as the Real Estate Investment Trust act of 2010
___17. Republic Act 9856 took effect on February 9, 2010.
___18. Real Estate Investment Trust or REIT is entitled to several tax incentives
___19. A REIT shall NOT be considered as a dealer of securities and shall not be subject to VAT on its
sale, exchange or transfer of securities forming part of its real estate-related assets.
___20. The word REIT stands for REAL ENTRY INVESTMENT TRUST.

II. ENUMERATION. (2pts each number)

REIT is a stock corporation created for the purpose of owning and managing income-generating real
estate such as:
1.
2.
3.
4.

5.
6.
7.
8.

Parties to a REIT: In order to manage its income-generating real estate and other investments, a REIT is
required to engage the services of the following: (NO NEED TO EXPLAIN)
9.
10.

III. ESSAY. Write your answer as precise and short as possible. Irrelevant answers will not
be given any credit. (5 Points each)
1.

What is a REIT?

2.

What are the FUNCTIONS of the PROPERTY MANAGER?