WEBVTT

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Latham's Word of the Day
from the Book of Jargon,

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Real Estate and REITs is

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UPREIT.

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An UPREIT is a REIT that holds

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all or substantially all of its assets
through an operating partnership.

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Owners generally are able to
contribute their real estate

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to an operating partnership
on a tax-deferred basis

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in exchange for OP Units,

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which are intended to have the same
value as a share in the REIT,

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and the same rights to dividends,

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and typically have a redemption
right either for cash

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or in exchange for REIT stock.

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This is attractive to real estate owners

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because it allows them to diversify
their investments on a tax-deferred basis

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while providing an opportunity
for liquidity in the future.

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This is also a useful tool
for broadening a REITs options

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when looking at creative
solutions for acquisitions

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and is very commonly used
among publicly traded REITs.

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UPREIT.