1.3 Acquired or to Be Acquired Real Estate Operations (Rule 3-14)

Rule 3-14 differs from Rule 3-05 in a number of ways, including its requirements that (1) a registrant file only abbreviated income statements for significant acquired or to be acquired real estate operations (real estate acquiree) and (2) the number of periods to be presented is limited to the most recent fiscal year and interim period, if applicable.

The following factors govern whether and, if so, for what period financial statements for the real estate acquiree are required:

• Whether the acquired or to be acquired assets and liabilities meet the definition of a “real estate operation” for SEC reporting purposes (see Section 3.2).
• Whether consummation of the real estate acquisition is probable (see Section 3.2) or has recently occurred (see Section 3.4).
• Significance of the real estate acquiree, which is assessed by performing the investment test outlined in Rule 1-02(w) (see Section 3.3).
• The type of SEC filing being submitted (see Section 3.4).

In addition, Section 3.5 discusses the form and content requirements for the abbreviated income statements of real estate acquirees, and Section 3.6 summarizes key differences between Rules 3-05 and 3-14.