What is a test for a REIT to qualify as a Mutual Fund Trust (MFT)?

For a Real Estate Investment Trust (REIT) to qualify as a Mutual Fund Trust (MFT), it must pass the Property Test. This test is crucial because it ensures that the trust's assets primarily consist of real estate investments or similar properties. To meet the criteria of a Mutual Fund Trust, a significant portion of the income must be derived from qualifying property, such as real estate holdings.

Passing the Property Test allows the REIT to maintain the tax advantages associated with being classified as a Mutual Fund Trust, which is beneficial for both the trust and its shareholders. The Property Test specifically focuses on the composition and nature of the trust's assets, which reinforces the requirement for MFT status. Other criteria, such as guaranteeing minimum dividends or being publicly traded, are not standard requirements for qualifying as a Mutual Fund Trust, making the passing of the Property Test the correct answer in this context.