Real estate investment trusts

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Reference no: EM131622117

Why are REITs (= Real Estate Investment Trusts) able to pay dividends that exceed their Net Income?

a. This is nonsense, this is not possible.

b. Because rental income of real estate is high and stable.

c. Because they follow the Residual Dividend Model.

d. Because the “Bird-in-Hand” Clientele demands it.

e. Because they have high amounts of depreciation.

Reference no: EM131622117

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