1. How much of the distributable income of a REIT should be given as annual dividends to its stockholders? (a) 70%; (b) 80%; (c) 90%; and (d) 95% 2. What is the minimum number of shares that all public stockholders of a REIT should hold? (a) 1; (b) 20; (c) 50; and (d) 100 3. What is the minimum number of public stockholders that a REIT should have? (a) 500; (b) 1,000; (c) 1,500; and (d) 2,000 4. What is the ceiling of executive compensation that should be given as annual pay of all directors and principal officers of a REIT in relation? (a) 10% of the net income before tax; (b) 15% of the net income before tax; (c) 1% of the gross income; and (d) 2% of the gross income 5. What is the ceiling of fees that should be paid to fund and property managers of a REIT? (a) 1% of the net asset value of assets under their management; (b) 3% of the net asset value of assets under their management; (c) 1% of the gross income; and (d) 2% of the gross income 6. What is the limit of investments of income generating real estate outside of the Philippines that a REIT can undertake in relation to its deposited property? (a) Not more than 30% ; (b) Not more than 40%; (c) Not more than 50%; and (d) Not more than 60% 7. A REIT has a governing board composed of 11 directors. How many of these 11 directors should be independent? (a) 1; (b) 2; (c) 3; and (d) 4
8. What is the minimum paid up capital of a REIT?
(a) P100-million; (b) P200-million; (c) P300-million; and (d) P400-million 9. By how much of the deposited property of a REIT should be invested in income generating real estate? (a) 65%; (b) 70%; (c) 75%; and (d) 80% 10. What is the minimum number of years of good track record from date of acquisition that a real estate should be considered as an allowable investment of a REIT? (a) 3; (b) 4; (c) 5; and (d) 6 11. Synthetic investment products are derivatives and other securities created exclusively out of one or more financial instruments to simulate the returns of the underlying assets or indices. By how much of the investible funds should be allocated by a REIT on these synthetic investment products? (a) Not more than 1%; (b) Not more than 3%; (c) Not more than 5%; and (d) Not more than 7% ANSWER KEY: 1. 2. 3. 4. 5.
C C B A
90% 50 1,000 10% of the net income before tax A 1% of the NAV of assets under their management 6. B Not more than 40% 7. D 4 8. C P300-million 9. C 75% 10. A3 11. C Not more than 5%