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Dynex to Pay Dividend to Maintain REIT Status

GLEN ALLEN, VA-Dynex Capital Inc. will have to pay a dividend to preferred shareholders if it wants to maintain its REIT status under the amended Internal Revenue Code of 1986.

By Amy Vaughn | Updated on May 25, 2001

GLEN ALLEN, VA-Dynex Capital Inc. is a financial services company based here that has just announced it will pay dividends on preferred stocks to shareholders as of June 8, 2001. The reason for the announcement is that the desire to maintain REIT status; the company elects to be treated as a REIT for tax purposes. According to the amended Internal Revenue Code of 1986 the dividend is then necessary to hold that status.

Preferred shareholders will receive $0.2925 per share on Series A and Series B preferred stock and $0.3649 per share on Series C preferred stock in respect to accrued and unpaid dividends on such shares. The dividends will be paid on July 20, 2001 and shareholders will receive their dividend regardless of whether or not their preferred shares were tendered in connection with Dynex’s tender offer for each such series of preferred stock.

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