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
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.
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.
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