<p class="FlushLeft" style="line-height: 20.8px; margin: 12pt 0in 0pt;">The recently enacted Consolidated Appropriations Act, 2016 makes some significant changes that affect real estate investment trusts, Foreign Investment in Real Property Tax Act reporting and withholding requirements, and depreciation of real property.</p>
<p class="FlushLeft" style="line-height: 20.8px; margin: 12pt 0in 0pt;">A REIT is a tax-advantaged vehicle for investing in real property and mortgages on real property. Assuming its many requirements are met, the REIT generally is not taxed on its income that is distributed to its investors, and the character of the REIT’s income as qualified dividends or as capital gain may be preserved for the investors.</p>