NEW YORK CITY–Recent guidance from the IRS and the passage of the Protecting Americans from Tax Hikes Act of 2015 may make future REIT spin-offs less likely but are unlikely to derail REIT plans already on track, Fitch Ratings said Thursday. That being the case, the release of the ratings agency’s special report on “the state of REITization in the US” coincided with MGM Resorts International‘s announcement of key hires for the management of MGM Growth Properties—a prime example of the new path that a number of issuers are taking.

Instead of spinning off MGP as a standalone REIT, the parent company is contributing properties to a new subsidiary. The idea in this scenario is that a portion of the subsidiary would be sold or granted to third-party investors, which in theory would eventually trade the subsidiaries at real estate multiples. It’s a tack likely to also be taken by Macy’s Inc., which earlier this month reaffirmed its interest in monetizing its owned real estate.

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 now!

  • Free unlimited access to'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 and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.