The companies, which typically focus on distinct areas of real estate such as offices, retail properties or apartments, must pay at least 90% of their taxable income out as dividends. They don't pay corporate income tax on the actual amount they pay out, but they do on the portion they retain.

(In "REITs Offer Stock/Cash Dividend Combo To Preserve Cash," published at 12:41 p.m. EST, the definition of the REITs' tax treatment was incorrect).

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