Reits providers given more flexibility

Providers of Real estate investment trust (Reits) have welcomed changes made by Alistair Darling allowing them to pay dividends in stock instead of cash.

Since last year, firms have lobbied for a relaxation of the rules, which currently require them to pay 90% of rental income in cash dividends in return for exemption from corporate and capital gains taxes. The British Property Federation (BPF) says the amendment leaves the vehicles better placed to expand. “Refinancing by Reits has shown confidence in the sector and many are now assessing opportunities for new investment,” BPF chief executive Liz Peace says.  “Allowing Reits greater flexibility over how they manage their cash will benefit our economy as we begin to see improvements...