PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced there is no AMT adjustment (0.00%) to RAIT’s common shareholders, Series A preferred shareholders, Series B preferred shareholders or Series C preferred shareholders for tax year ended December 31, 2016. This is a decrease from the 4.36% AMT adjustment originally reported in a press release dated January 25, 2017.
These changes do not impact the tax characterization of 2016 dividends previously announced on January 25, 2017 and reported on Form 1099-DIV.
Revised AMT Adjustment Information
AMT adjustments are to be apportioned between a real estate investment trust (“REIT”) and its shareholders under Internal Revenue Code Section 59(d). Although regulations have not yet been issued under that provision, based on regulations issued pursuant to a similar provision of prior law and the legislative history of the current provision, it would follow that such AMT adjustments are to be apportioned to a REIT’s shareholders to the extent that a REIT does not distribute its taxable income and opts to utilize Net Operating Losses (“NOLs”). On January 25, 2017, RAIT announced AMT adjustments of 4.36% of each dividend to its common shareholders, Series A preferred shareholders, Series B preferred shareholders and Series C preferred shareholders. RAIT has now determined this amount does not need to be allocated to the shareholders and preserves RAIT’s NOLs for future periods.
RAIT is now revising its previously announced 4.36% AMT adjustment for each dividend to reflect RAIT’s determination that there is no AMT adjustment (0.00%) to RAIT’s common shareholders, Series A preferred shareholders, Series B preferred shareholders or Series C preferred shareholders for tax year ended December 31, 2016.
If you have questions, please consult your tax advisor for further guidance.
About RAIT Financial Trust
RAIT Financial Trust is an internally-managed real estate investment trust focused on providing debt financing options to owners of commercial real estate throughout the United States. For more information, please visit www.rait.com or call Investor Relations at 215.207.2100.