American Tower Shareholders OK Conversion To REIT
November 30, 2011 at 4:09 AM (PT)
Shareholders of AMERICAN TOWER CORP. have approved the conversion of the company into a real estate investment trust (REIT).
At a special meeting of stockholders on TUESDAY (11/29), the shareholders approved a merger of AMERICAN TOWER CORP. with and into AMERICAN TOWER REIT, INC., a wholly-owned subsidiary. The reorganization allows the company to get REIT treatment for tax purposes for 2012.
The board of AMERICAN TOWER has also approved a one-time distribution of 35 cents/share, payable DECEMBER 23rd to stockholders of record as of DECEMBER 12th. The distribution before JANUARY 1st is a necessary step for REIT conversion.
CEO JIM TAICLET said, "Today marks two key milestones in the history of our Company. First, with stockholder approval of our reorganization and our declaration of a special distribution, all significant steps have been completed to elect REIT status for the taxable year beginning JANUARY 1st, 2012. Second, we anticipate initiating a regular quarterly dividend in early 2012, which along with the cash flow growth we expect to generate, should provide our investors with a compelling total return on investment."