Sirius Real Estate has plans to convert its U.K. business to a U.K. REIT from April 1, 2022.
"The proposed conversion to a U.K. REIT is a natural progression following the company’s transformational acquisition of BizSpace in the United Kingdom last year and provides greater comparability to other U.K. REITs in terms of our FFO and dividend yields for investment purposes,” said Andrew Coombs, chief executive of Sirius Real Estate.
The proposed REIT conversion follows the company’s U.K. acquisition of BizSpace in November 2021. By entering the U.K. REIT regime, the company will no longer be subject to U.K. corporation tax on income or gains from its property rental business and will be required to pay 90 percent or more of its U.K. property rental business income to shareholders annually as property income distributions (PIDS), which can be satisfied by both cash and SCRIP dividends.
Certain classes of shareholder are eligible to receive gross PIDs; however
