Increasingly, Real Estate Investment Trusts (REITs) are opting to issue operating partnership units under long-term incentive plans (LTIPs) to their executives in lieu of traditional stock. Yet not everything about LTIPs and operating partnership units is clear-cut.

The trend to use operating partnership units has grown in recent years because executives are typically not taxed on the receipt and vesting of the operating partnership units as they would be on receipt of shares once the shares' restrictions lapse. Issuing operating partnership units may result in significant tax issues.

Does your company have the resources to address these challenges? Read about our Partnership Services for REITs in the attachment below.