Which investment restrictions apply to an Irish REIT?

• A. (ii) and iii) only.
• B. (i) and (ii) only.
• C. (i) and iii) only.
• D. (i), (ii) and iii.

Answer: (B)

Irish REITs are governed by rules that keep the portfolio centered on real estate. The asset side requires that a large portion of the total assets be invested in real estate assets (and cash) so the trust remains property-focused. Specifically, at least 75% of total assets must be in real estate assets or cash, allowing only a limited amount to be in other kinds of investments. On the income side, at least 75% of gross income needs to come from rents and other property-related income (such as mortgage interest on property or gains from the disposal of qualifying assets). These two requirements are the investment restrictions that shape what a REIT can hold and earn.

There is also a distribution requirement, where a substantial portion of profits must be paid out to shareholders as property income distributions. However, this is a tax/compliance matter, not an investment restriction on how the assets are invested. So the statements that describe asset composition and income sources apply as investment restrictions, while the distribution rule does not.