Subject: File No. S7-35-11
From: Michael Gecewicz

September 4, 2011

REITS are constituted to attract investors who require consistent income. Changing the way REITS are "taxed" will severely impact the capital of those investing in REITS to increase income over the paltry yields on government bonds. There appears to be no valid reason for the change other rhan roiling a market that maintains consistent capital for purchasing real property.