Rouse Co., one of the largest U.S. developers, said Thursday it plans to convert to a real estate investment trust on Jan. 1.
The Columbia-based company said the Internal Revenue Service reviewed the plan and issued a favorable ruling.
REITs are companies that own all types of commercial real estate, from apartments to office buildings to movie theaters. They are exempt from corporate income taxes if, among other things, they distribute at least 95 percent of net income to shareholders as a dividend.
Last year, Rouse paid taxes of $25.6 million, or 46 cents per share.
“This action is very efficient from a financial point of view and will not impact our fundamental operations,” said Anthony Deering, chairman and chief executive. “There will be no substantive changes in our lines of business, our dividend policy, our name or our future business plans.”
Rouse owns and manages a $6 billion portfolio of properties.
