ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
82. Distribution requirements of a D-REIT
Edition: 2023-10-06 · In force
82. Distribution requirements of a D-REIT
(1)The trustee shall make the distributions of income upon the recommendations of the REIT manager and in accordance with the scheme documents.(2)In making distributions under paragraph (1), the trustee shall take into consideration the—(a)income for the period;(b)total returns for the period;(c)liabilities and financial obligations;(d)cash flow available for distribution;(e)need to preserve and maintain the condition of the assets of the fund and to provide for asset replacement;(f)stability and sustainability of distribution of income;(g)investment objective of the D-REIT;(h)distribution policy of the D-REIT; and(i)requirements of the scheme documents.(3)The trustee may where the distribution is proposed other than on an annual basis based on audited financial accounts require an audit to be undertaken for the purpose of determining the matters to be considered paragraph (3) and paragraph (5).(4)Where the trustee is of the opinion that the level of distribution recommended by the REIT manager is not in the interests of REIT securities holders, the trustee shall call a meeting of REIT securities holders to approve, by way of ordinary resolution, a lower distribution.(5)A REIT manager may propose and the trustee may make distributions in excess of the current income where the REIT manager, upon consultation with the trustee, certifies, on reasonable grounds that—(a)immediately after the making of such distribution the D-REIT shall be able to pay from the assets of the fund, the liabilities incurred on behalf of the trust as and when they fall due and the projected liabilities for at least the next year; and(b)the payment shall not adversely affect the capacity to maintain and preserve the assets of the REIT.(6)The REIT manager shall, if the REIT manager proposes payment of distributions in excess of the current income—(a)disclose to the trustee the basis of the calculation of the distribution proposed under paragraph (5); and(b)report such proposal as part of the continuing disclosure requirements under these Regulations.