Definition
Canadian REITs are typically structured as trusts (not corporations) so income flows through to unitholders without entity-level tax. To qualify for special tax treatment, a REIT must derive at least 95% of revenue from rents and other passive real-property sources. Distributions are typically a mix of return of capital, capital gains, and other income.
Source
Income Tax Act s.122.1 (SIFT rules); TMX listings