Which of the following is true about Irish REIT restrictions: At least 75% of its income derives from property rental and at least 75% of its assets relate to its property rental business.

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

Answer: (A)

Irish REIT status hinges on two main thresholds that keep the vehicle focused on real estate. The first is an income test: at least 75% of gross income must come from rents on real property. The second is an asset test: at least 75% of assets must relate to real estate or the property rental business. A third restriction described in the options isn’t part of the standard Irish REIT framework, so it doesn’t apply. Therefore, the statements that hold true are the income-from-rents and the real-estate-asset tests, and those two alone define the eligibility. For example, a company with 80% rental income and 80% of assets in real estate would meet both tests and qualify for REIT treatment.