The "A5 Advantage"
STRUCTURAL ADVANTAGES
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Options for dividend payment dates
Although other administrators may require that the dividends be paid on a June 30/December 31 cycle, there is no tax rule that requires that cycle. Public REITs, for example, pay preferred dividends on various cycles. Our program allows you to choose from three alternative payment cycles to best meet your needs: Semi-annual
These options may also eliminate the need for the REIT to pay a small dividend shortly after issuing preferred shares late in the year. |
Pick the payment cycle that best fits your needs ---
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Simplicity for common dividends
Sponsors need the flexibility to make distributions on the common shares whenever the need arises. Other programs may require the REIT to “accrue, declare or set aside” the preferred dividend for a partial period before paying the common dividend. A violation of such terms would disqualify the distributions on the common shares for the dividends paid deduction and jeopardize REIT status. In our experience, the “set aside” concept creates unnecessary paperwork, uncertainty and potential controversy. To avoid these issues, our terms for the preferred shares permit interim dividends on the common shares simply by having paid the dividend on the preferred shares at the last scheduled payment date. As a result, a dividend may be paid on the common shares without declaring or paying a dividend on the preferred shares for an interim period. This structure helps avoid a potentially disastrous “foot fault” in your REIT tax compliance and issues with the IRS or due diligence by a prospective buyer of the REIT. > Next: Attractive cost structure... |
Securities offered through A5 Securities LLC - Member FINRA/SIPC.
A5 REIT Services LLC and A5 Securities LLC are separate entities affiliated by common ownership.
A5 REIT Services LLC and A5 Securities LLC are separate entities affiliated by common ownership.