HASI Announces Its Board Of Directors Has Unanimously Approved A Plan To Revoke Its Real Estate Investment Trust Election And Become A Taxable C-corporation, Effective January 1, 2024
Portfolio Pulse from Benzinga Newsdesk
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) plans to revoke its REIT status and become a C-Corporation effective January 1, 2024. The Board believes this will not materially impact business operations and will allow tax-efficient operation due to existing NOLs. The change is aimed at providing greater flexibility to capitalize on clean energy opportunities.
December 21, 2023 | 9:28 pm
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HASI's Board has approved a change from REIT to C-Corporation to enhance flexibility in clean energy investments. The move is expected to be tax-efficient and not materially affect operations.
The decision to change corporate structure is typically a strategic move to optimize tax efficiency and operational flexibility. For HASI, this move is likely to be viewed positively by investors who see the potential for growth in the clean energy sector. The company's use of NOLs to maintain tax efficiency suggests a well-planned transition, which could lead to a positive short-term impact on the stock price.
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