Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

CHEVY CHASE, MD-Commercial finance concern CapitalSource Inc. will elect REIT status with the goal of operating under the new category in 2006, pending final approval of the move from its board of directors. As a REIT the company will be free of corporate income tax, provided that it distributes 95% of its taxable earnings to investors. To that end, CapitalSource will payout a special dividend to investors by Jan. 31, 2006, meeting the major condition of REIT status.

“To our minds, this is the most efficient corporate structure in which to operate our business because it allows us to hold a significant portion of our assets in a more tax-efficient manner,” CapitalSource chairman and CEO John Delaney says. “CapitalSource intends to continue to grow all of its current asset-based, corporate finance and real estate lending products while also expanding into complementary lines of business.”

Operating under the assumption that business growth will continue to be robust and that the company will see further success as a result of its REIT status, CapitalSource has estimated that it will payout dividends of $2.15 per share in 2006 and $2.90 in 2007.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.