Under New Tax Law the Question Is, To Be or Not to Be a REIT?

• For real estate investment trusts, a spur to become a C corp • Conversion would free up cash for mall, office-property owners

The sturdy, reliable REIT is facing an existential choice. Should it abandon its tax-free structure to meet pressing capital needs, using the new U.S. tax law as a stepping stone? Or hang on to a status that gives it access to its very own set of investors?

In a letter to investors published this week, Third Avenue Real Estate Value Fund portfolio managers Jason Wolf and Ryan Dobratz argue that some U.S. REITs should consider converting to a regular corporation, known as a C corp, ...