[Congressional Record Volume 156, Number 124 (Wednesday, September 15, 2010)]
[House]
[Pages H6696-H6697]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 RECOGNIZING ANNIVERSARY OF LAW CREATING REAL ESTATE INVESTMENT TRUSTS 
                                (REITS)

  Mr. TANNER. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 1595) recognizing the 50th anniversary of the 
passage of legislation that created real estate investment trusts 
(REITs) and gave millions of Americans new investment opportunities 
that helped them build a solid foundation for retirement security and 
has contributed to the overall strength of our economy.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 1595

       Whereas, on September 14, 1960, President Dwight D. 
     Eisenhower signed into law tax legislation enabling real 
     estate investment trusts (hereinafter referred to as 
     ``REITs'') to be established throughout the United States 
     under regulations set by the Federal Government;
       Whereas the passage of this legislation enabled REITs to 
     provide all investors with the same opportunity to invest in 
     large-scale commercial real estate that previously was open 
     only to large financial institutions and wealthy individuals 
     through direct investment in such real estate;
       Whereas REITs have placed within the reach of the average 
     American investor large-scale commercial real estate 
     investment through publicly traded, regulated securities, 
     which provide investors with transparency and liquidity;
       Whereas REITs, by expanding the opportunity to invest in 
     commercial real estate, a separate and distinct asset class 
     important to the creation of balanced investment portfolios, 
     have enabled millions of Americans to gain the benefits of 
     dividend-based income, portfolio diversification and improved 
     overall investment performance;
       Whereas REITs have helped millions of Americans 
     successfully invest for their retirement security over the 
     past half-century; and
       Whereas September 14, 2010, will mark the 50th anniversary 
     of the legislation that created this REIT investment 
     opportunity: Now, therefore, be it
       Resolved, That the United States House of Representatives 
     recognizes the 50th anniversary of the passage of the 
     legislation that created real estate investment trusts 
     (REITs) and the enhanced opportunities for investment and 
     retirement security that have been afforded to Americans from 
     all walks of life as a result of this landmark legislation.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Tennessee (Mr. Tanner) and the gentleman from Ohio (Mr. Tiberi) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Tennessee.


                             General Leave

  Mr. TANNER. Mr. Speaker, I ask unanimous consent that Members have 5 
legislative days to revise and extend their remarks on the resolution 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Tennessee?
  There was no objection.
  Mr. TANNER. I yield myself such time as I may consume.
  Mr. Speaker, on September 14, 1960, President Eisenhower signed 
legislation into law, creating real estate investment trusts.
  House Resolution 1595 celebrates the 50th anniversary of REITs, as 
they are called, and the enhanced opportunities they provide for 
investments in real estate by Americans from all walks of life. REITs 
allow individual investors to purchase interests in portfolios of real 
estate assets. In many instances, REITs also operate the properties 
that they own.
  To qualify as a REIT, these companies must distribute 90 percent of 
their income back to their shareholders in the form of dividends. As 
noted in the resolution, REITs have given average American investors 
access to large-scale commercial real estate investment opportunities 
through publicly traded, regulated securities, which provide investors 
with transparency and liquidity.
  Four REITs are headquartered in my home State of Tennessee, and 
nearly 800 Tennessee properties are owned by REITs. Across the country, 
REITs own approximately $500 billion commercial real estate properties, 
approximately 10 to 15 percent of institutionally owned commercial real 
estate.
  In 2009, REITs paid over $13.5 billion in dividends. More than 30 
countries around the world have passed legislation enabling REITs. 
Again, they have helped millions of average American investors to 
participate in the real estate markets of this country as well as 
others.
  So, Mr. Speaker, I would urge the passage of House Resolution 1595, 
and I reserve the balance of my time.
  Mr. TIBERI. I yield myself such time as I may consume.
  (Mr. TIBERI asked and was given permission to revise and extend his 
remarks.)
  Mr. TIBERI. I thank the gentleman from Tennessee as well for being 
here on the floor to recognize that 50 years ago, in fact, this week, 
President Eisenhower signed into law legislation that created real 
estate investment trusts, or REITs, as the gentleman said, which are 
investment vehicles that have allowed millions and millions of 
Americans expanded opportunities to invest in commercial real estate.
  Mr. Speaker, while we take for granted that middle class investors 
and middle class Americans across our country have the opportunity to 
invest in commercial real estate, it is important to note that prior to 
1960 it was only large financial institutions and wealthy Americans who 
had the means to do so. Over the last 50 years, REITs have greatly 
expanded that opportunity by allowing investors of all income levels to 
buy publicly traded, regulated shares of these commercial real estate 
investment vehicles.
  REITs haven't just allowed middle class Americans to diversify their 
investment portfolios. They have also helped build our local 
communities--a true win-win situation. Indeed, over the last five 
decades, these investment vehicles have helped finance important 
commercial real estate projects in every one of our congressional 
districts across our country--from hotels to shopping malls, to 
hospitals, to office parks. In fact, in my congressional district, I am 
honored to have a number of important entities that are REITs, that 
truly people in our district don't even realize are real estate 
investment trusts, which, collectively, employ thousands of central 
Ohioans. Fifty years after enactment, REITs remain an important part of 
our Tax Code.
  I am pleased to be a cosponsor of this bill with Congressman Levin 
and Congressman Camp, the lead sponsors; and I am pleased to be part of 
this resolution of recognizing their 50-year anniversary.
  Mr. Speaker, I reserve the balance of my time.
  Mr. TANNER. Mr. Speaker, I am pleased at this time to yield 2 minutes 
to the gentleman from Illinois (Mr. Davis).
  Mr. DAVIS of Illinois. Let me thank the manager for the time.
  Mr. Speaker, I rise in strong support of this resolution recognizing 
the 50th anniversary of the passage of legislation that created real 
estate investment trusts.
  I happen to come from the City of Chicago. I represent downtown 
Chicago, and of course it is an investment opportunity, not only in 
Chicago but all over America, for individuals to make use of this 
opportunity. So, for the last 50 years, they have had that opportunity, 
and I look forward to seeing it continue to grow and to develop. I 
appreciate the opportunity to say that I think real estate investment 
trusts are very important to the economy of our country, and I strongly 
support this resolution.
  Mr. TIBERI. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mr. TANNER. Mr. Speaker, I am pleased to yield 2 minutes to the 
gentleman from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. I appreciate the gentleman from Tennessee's agreeing 
for me to speak on this.

[[Page H6697]]

  Mr. Speaker, I rise as a cosponsor of H. Res. 1595 to recognize the 
50th anniversary of real estate investment trusts.
  For the last 50 years, we have seen how these publicly traded REITs 
have provided American investors with an affordable way to invest in 
real estate. I do a lot of work with livable communities. I want to 
congratulate the REIT industry for their efforts to pursue practices 
that will reduce the carbon footprints of their properties.

                              {time}  1110

  We are dealing with serious problems of energy efficiency and carbon 
pollution. Buildings account for almost 40 percent of our country's 
total energy consumption and 72 percent of our electricity consumption. 
This is one area where the industry has had a footprint that extends 
from coast to coast.
  I commend the REIT industry for joining with Energy Star to find ways 
to improve the energy efficiency of the industry. I am pleased to see 
honorees of this program include the Simon Property Group, AMB Property 
Corporation, and ProLogis--which owns property in my congressional 
district.
  I have enjoyed working with the REIT industry to introduce H.R. 4599, 
the Renewable Energy Expansion Act, which extends and improves the 
Recovery Act's grant program for renewable energy production and 
involves the real estate investment trusts in this arena. I have worked 
with my colleague, Linda Sanchez, to resolve a technical barrier which 
will dramatically enhance the ability of REITs to access these grants. 
It is just one example of where, working with the industry, we have 
been able to deal with long-term benefits to our communities, 
stabilizing investments, strengthening neighborhoods, working on ways 
to make sure we are productive, and that families are safer, healthier 
and more economically secure. I congratulate them on 50 years of 
progress and look forward in the future to having them as valuable 
allies in this effort.
  Mr. STARK. Mr. Speaker, I rise today in support of H. Res. 1595, 
Recognizing the 50th Anniversary of Real Estate Investment Trusts.
  Fifty years ago, Congress passed tax legislation to enable real 
estate investment trusts to be created. Before REITs, only financial 
institutions and the wealthy could afford to invest in commercial real 
estate. REITs allow all investors to have these same opportunities to 
invest directly in real estate. REITs opened the market to individual 
investors of all income levels, providing the chance to invest in real 
estate the way they invest in other industries, to diversify their 
portfolios, and generate income for their families for a secure future.
  REITs in the U.S. have grown into a market worth over $300 billion. 
The tax reforms passed by Congress in 1986 permit REITs to operate and 
manage property themselves and REIT subsidiaries now mange everything 
from residential housing to health care facilities. Over 100 REITs are 
now publicly traded. These developments allow even more growth 
opportunities for individuals who include REITs in their retirement 
financial planning.
  Mr. Speaker, I ask that my colleagues join me in celebrating the 50th 
anniversary of Real Estate Investment Trusts.
  Mr. PASCRELL. Mr. Speaker, I rise today to acknowledge the 50th 
anniversary of the legislation that enabled the formation of Real 
Estate Investment Trusts, or REITs.
  Today's REITs provide investors with an open and liquid option to 
invest in high-quality commercial real estate.
  Throughout the country, REITs owned companies provide management and 
leasing services to tenants ranging from health care to retail, and 
multifamily housing to lodging and self-storage sectors. Thanks to the 
liquidity and capital raising advantages enjoyed by publicly held 
REITs, many of these tenants have found an effective and efficient way 
to improve or expand their facilities while remaining focused on their 
core business.
  REITs are pursuing forward looking policies that seek to reduce their 
carbon footprints with energy consumption reduction and by minimizing 
the energy requirements of their new buildings. In New Jersey, REITs 
own over twenty buildings that qualify for the Energy Star label.
  On the 50th anniversary of the enactment of the first REIT law, I 
look forward to supporting Chairman Levin's resolution commemorating 
this occasion as it comes to the floor, and I encourage the industry to 
continue its commitment to sustainability and providing its investors 
with a vehicle to advance both their investments and the surrounding 
communities.
  Mr. CAMP. Mr. Speaker, I rise in support of H. Res. 1595, and I am 
pleased to be the lead Republican cosponsor of the resolution along 
with the distinguished Chairman of the Ways and Means Committee, Mr. 
Levin.
  This important and timely resolution celebrates the 50th anniversary 
of legislation authorizing real estate investment trusts, or REITs. 
President Dwight D. Eisenhower signed this legislation into law one-
half century ago, September 14, 1960.
  Over that half century, REITs have helped finance the very projects 
that have built the main streets and downtowns of each and every one of 
our communities, from shopping malls and health care facilities, to 
business parks, high-rises and waterfronts. Today, REITs provide 
Americans from all income levels the opportunity to pool their 
resources and invest in large scale commercial real estate ventures.
  That has not always been the case. Prior to the 1960 legislation, 
only the very wealthiest individuals and corporations had the 
accumulated capital required to invest in commercial real estate. 
Thanks to REITs and the unique financial incentives they offer to their 
shareholders, more middle class Americans can save and invest, whether 
it is for a college education, a new home, or a secure retirement.
  I am proud to support this commemorative resolution, and I urge my 
House colleagues to do the same.
  Mr. BACHUS. Mr. Speaker, I rise today in support of H. Res. 1595, a 
resolution introduced by my colleagues Representatives Levin and Camp, 
to commemorate the 50th anniversary of the establishment of real estate 
investment trusts, or REITs.
  Prior to 1960, access to the returns for investments in high-quality 
commercial real estate assets was limited to institutions and 
individuals with significant financial resources. To remedy this, 
Congress adopted legislation establishing REITs to make it easier for 
small investors to invest in commercial properties, similar to mutual 
funds, by pooling their resources. President Eisenhower signed the 
legislation into law on September 14, 1960, fifty years ago today.
  As my colleagues know, REITs are companies dedicated to owning and 
operating income-producing real estate, such as apartments, shopping 
centers, regional malls, office buildings, industrial warehouses, 
hotels and lodging, health care facilities, and self-storage buildings. 
Federal tax law requires that REITs meet specific tests regarding the 
composition of their gross income and assets, but the key feature of a 
REIT is the requirement that at least 95 percent of a REIT's taxable 
income be returned to its shareholders every year. For example, in 
2008, REITs returned approximately $17.8 billion to shareholders in the 
form of dividends. These income returns have been one of the primary 
reasons why the industry has performed so well over the years. In 
addition, REITs have been recognized for the diversification benefits 
they bring to individual portfolios, the efficiency of their liquidity 
attributes, and the professional management practices they bring to the 
table.
  Congress created the path for REITs to exist 50 years ago today, and 
Congress has continued to preserve and perfect the REIT method of real 
estate investing through the adoption of targeted legislation that has 
mirrored the changing investment marketplace.
  I want to congratulate the REIT industry on this important milestone 
and I hope that the REIT method of investing continues to be strong, 
efficient and effective in today's economy.
  Mr. TIBERI. Mr. Speaker, I yield back the balance of my time.
  Mr. TANNER. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Bright). The question is on the motion 
offered by the gentleman from Tennessee (Mr. Tanner) that the House 
suspend the rules and agree to the resolution, H. Res. 1595.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the resolution was agreed to.
  A motion to reconsider was laid on the table.

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