Which of the following statements is(are) true about REITs?
I. Operating losses flow through directly to REIT owners
II. Profits from operations usually flow through directly to REIT owners
III. They provide long-term financing to real estate projects.

Real Estate Investment Trusts (REITs) are companies, usually traded publicly, that manage equity and debt investments in real estate to earn profits for shareholders. Although REITs must, by law, pass through 95 percent or more of their earnings to retain their status as REITs, they do not pass losses through directly to investors and, therefore, are not direct participation programs.