U.K. REITs want OK to pay dividends in stock

10/30/2009 | NYTimes.com

Britain's biggest REITs have come together to persuade the government to allow them to pay some of their dividends, which are mandatory under U.K. law, with stock instead of cash. REITs have to pay out 90% of their profits as dividends. "The inability of REITs to count stock dividends towards the 90% requirement creates an unnecessary instability for REITs, constraining their ability to conserve cash by offering a stock alternative at a time when many listed companies in the U.K. and overseas are doing just that," said Peter Cosmetatos, director of policy at the British Property Federation.

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