Net lease glossary
Delaware Statutory Trust (DST)
A trust structure that lets multiple investors own fractional interests in real estate, which the IRS treats as eligible replacement property in a 1031 exchange.
A Delaware Statutory Trust is a legal entity that holds title to real estate and sells beneficial interests to investors. Under IRS Revenue Ruling 2004-86, properly structured DST interests qualify as like-kind replacement property for a 1031 exchange. Net lease assets are common DST holdings because they fit the strict limits on what a trustee can do, such as no new leases or capital raises. Investors give up control, liquidity, and decision-making in exchange for passive ownership.