Arlington Asset Eyes REIT Status
The company reported a net loss of $5.7 million, or $0.19 per diluted common share for the third quarter.
ARLINGTON, VA–Locally-based Arlington Asset Investment Corp. has announced that its Board of Directors has approved a plan for the company to qualify as a REIT for the company’s taxable year ending December 31, 2019.
The company reported a net loss of $5.7 million, or $0.19 per diluted common share for the third quarter and it expects that it will be able to use its net operating loss carryforwards as a C corporation in 2019, according to J. Rock Tonkel, Jr., the company’s President and CEO.
“Remaining tax loss carryforwards upon REIT conversion will continue to be available to the Company as a REIT,” he says in a prepared statement.
Arlington Asset’s Board of Directors has also received a legal opinion from Hunton Andrews Kurth LLP regarding its ability to qualify as a REIT next year.
Arlington Asset Investment invests primarily in mortgage-related and other assets.
As of September 30, 2018, its $4.4 billion specified agency MBS portfolio had a weighted average amortized cost basis of $104.75 and a weighted average market price of $102.17. Its net long TBA agency MBS investment portfolio had a purchase price of $783 million and market value of $781 million. It also had $4 billion of repurchase agreements outstanding with a weighted average rate of 2.30%.