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Starwood Property to spin off family home rental business into new REIT

  • Starwood Property Trust (STWD) +3.1% AH after announcing plans to spin off its single-family home rental unit into a separate publicly-traded trust.
  • As part of the spinoff, STWD plans to contribute $100M in cash to help fund operations of the new Starwood Waypoint Residential Trust, which also is expected to secure a line of credit worth $400M.
Comments (2)
  • tomsum
    , contributor
    Comments (129) | Send Message
     
    " Starwood Property Trust expects that the spin-off will be treated for tax purposes as a distribution equal to the value of the distributed SWAY shares. The transaction is expected to close during the first quarter of 2014."

     

    I hold STWD in an IRA. Any one have an idea of the effect of this distribution on IRAs?
    1 Nov 2013, 09:40 AM Reply Like
  • Alw3
    , contributor
    Comment (1) | Send Message
     
    As long as you keep it in your Ira, there should no effect. Your basis in the sticks will of course be adjusted
    1 Nov 2013, 04:28 PM Reply Like
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