Two REITs out of one, lumber prices in record run-up, IRS issues HTC rules, some REITs to consider, and some things not to say when marketing a rental.
In Today's News
Aimco Announces Plans to Divide Into Two REITs
Apartment and Investment Management Company (Aimco) announced this week that it's dividing itself into two separate publicly traded real estate investment trusts (REITs): Aimco (NYSE: AIV) and Apartment Income REIT (AIR).
Why it matters: Aimco will continue its focus on apartment community development while AIR will offer investment in a portfolio of existing apartment communities. The company calls it a "pure play" apartment investment vehicle that will yield more consistent, higher payouts than the current structure.
Lumber Prices Notch Highest-Ever Four-Month Increase
The National Association of Home Builders (NAHB) says the 14.9% jump in August marks a four-month surge that's the highest since such data was first collected in 1949.
Why it matters: The NAHB says it's gotten reports from builders who have already returned deposits because they can't build at the quoted price. Customers with locked-in, financed prices also have issues. Anyone using lumber, in fact, will feel these effects. The trade group says removing tariffs on Canadian lumber would provide some immediate relief.
IRS Issues Final Federal Historic Tax Credit Regulations
The IRS has finalized the proposed regulations it issued in May for claiming the historic tax credit (HTC) on rehabilitation and redevelopment projects. The rules cover the five-year period for claiming the 20% credit, along with rules for calculating the HTC and defining some critical terms such as "ratable share" and "rehabilitation credit determined."
Why it matters: There's been some uncertainty around the HTC and similar tax credits since the passage of the Tax Cuts and Jobs Act of 2017, and this should help clear that up for the many users of these development incentives around the country.
Today on Millionacres
3 High-Dividend REITs to Buy Right Now
Millionacres' Liz Brumer looks at a trio of REITs in three different segments -- campus communities, medical offices, and retail -- and shows how they have weathered the pandemic while maintaining promise of strong payouts going forward.
Why it matters: High-paying dividends are great, but it isn't the only factor to consider when buying a REIT. Read this piece to find out the other reasons these three players merit consideration from investors looking for that yield to continue.
4 Things You Shouldn't Say in a Rental Description
"Great for," "best," "timeless," and "unique" sound innocent enough as marketing descriptions for a rental property, right?
Why it matters: Millionacres' Aly Yale explains why each one might not only send the wrong message but how that the message could, in some cases, even get you in some hot water.