Cyxtera Technologies: Cyxtera To Adopt REIT Status

Sep 28, 2022 | Posted by Abdul-Rahman Oladimeji

Cyxtera has announced that it is adopting a real estate investment trust (REIT) status. This move provides better tax status while making steady and consistent dividends available for its shareholders. However, the company needs to make most of its revenue from income-producing real estate. The company’s Board of Directors voted unanimously to convert to REIT. The move was sanctioned to take advantage of federal income taxes. Cyxtera plans to complete the conversion by January 1, 2023.

Cyxtera’s Chief Financial Officer, Carlos Sagasta, said: “Following a thorough analysis of the impact a REIT election would have on our business, we are confident the REIT structure will best position us for continued growth while maximizing long-term shareholder value. We look forward to completing the REIT conversion process over the next few months.”

The company will also be reincorporating in Maryland and adopting charter provisions to set REIT-related ownership restrictions. It will also separate part of its business into taxable Real Estate Investment Trust subsidiaries.