Cyxtera has announced that it will be pushing its intention to become a real estate investment trust (REIT) back to a later date. Earlier in September, the colocation firm announced its plan to adopt a REIT status for tax purposes. The initial plan was to complete the conversion by 1st January 2023. The company has now announced that its Board of Directors has chosen to push the conversion by one year.
The CEO of Cyxtera, Nelson Fonseca, said: “Our company continues to perform well, and we remain confident in the strength of our business and the robust demand for our global platform of highly interconnected data centers. As the expected tax and financial benefits of the REIT conversion are long-term in nature, delaying the conversion allows Cyxtera to focus on its capital raising and refinancing process while considering alternatives for the company and its capital structure without sacrificing any material benefit of the REIT conversion to the company and its stockholders.”
