### Question
Can you define what shared appreciation provision means?


### Answer
**Shared appreciation provision** is defined as the following in *26 U.S.C. § 856*:

> any provision—



(i) which is in connection with an obligation which is held by the real estate investment trust and is secured by an interest in real property, and



(ii) which entitles the real estate investment trust to receive a specified portion of any gain realized on the sale or exchange of such real property (or of any gain which would be realized if the property were sold on a specified date) or appreciation in value as of any specified date

#### Citation:
  - *26 U.S.C. § 856*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART II-REAL ESTATE INVESTMENT TRUSTS**

