THE REGULATION OF REAL ESTATE INVESTMENT TRUSTS (REIT) IN SOME EUROPEAN COUNTRIES AND ITS EFFECT ON THE IFRS FINANCIAL STATEMENTS

Abstract

Real estate investment trusts or REITs are ”companies that own or finance income-producing real estate across a range of property sectors (including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels). These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade in major stock exchanges, and they offer a number of benefits to investors.” (REIT, 2019). REITs operate worldwide from the USA to Hungary. The article focuses on the REIT-regulation in some European countries, mainly in the United Kingdom and in Hungary. As REITs are listed on stock exchanges, they have to prepare their financial statements based on International Financial Reporting Standards (IFRS). The paper looks at the presentation and specificities of the REIT status in the IFRS financial statements.

Keywords

• real estate investment trusts
• ifrs financial statements
• taxation