DAILY NEWS Feb 4, 2013 10:46 AM - 0 comments

WM denies eyeing real estate investment trust

Waste Management shares increased two per cent to $36.41 in New York on January 28, 2013

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By: SWR Staff
2013-02-04

Houston-based Waste Management Inc. has shot down any speculation that the company may convert into a real estate investment trust, as suggested by Credit Suisse Group AG analysts.

Waste Management spokesperson Lynn Brown confirmed to media on January 28, 2013 that the company was not considering a real estate investment trust, commonly know as a REIT. Her announcement came despite speculation that a REIT would “best-suited” for a company such as Waste Management.

A REIT means the corporation acts as an investment agent focusing on real estate and real estate mortgages.

Waste Management shares increased two per cent to $36.41 in New York on January 28, 2013. Shares climbed 6.4 percent, the biggest intraday gain since August 23, 2011. 

Republic Services Inc. (RSG), a Phoenix-based competitor, also deemed to be suited for a REIT, also climbed 1.7 percent to $31.63.

The Waste Management shares lost their gains following Brown’s announcement.

Investors generally prefer REIT conversions because of future tax benefits. Ninety per cent of taxable income must be distributed to shareholders.

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WM shares climbed 6.4 percent, the biggest intraday gain since August 23, 2011.
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Caption: WM shares climbed 6.4 percent, the biggest intraday gai...


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