Lease and Sales Distributions

Because the REITs will be backed with income producing IRETs, the proceeds derived from these IRETs will be distributed directly to REIT holders. This will be done in the same manner as any other IRET holder. Should IRETs be held in layered REITs, lease proceeds will be distributed directly to the end holder, skipping over repetitive distributions of proceeds.

In regards to property sales, the subREITs holding the IRETs will exchange the IRETs for their respective proceeds according to the guidelines in the IRET Technical Document. From there on, the subREITs may hold the proceeds to continue backing them for a limited time, but will be buying back subREITs using those funds and in turn burn them. For multi-layered subREITs the buyback process can continue all the way from the bottom all the way to the REIT.