Newcastle Investment Corp. (NYSE:NCT) recently announced that the company’s name shall now be changed beginning 2017. Newcastle said that the Board of Directors decided to change the status of company from Real Estate Investment Trust to C–Corporation. The new company will be called Drive Shack Inc. starting January 2017. The decision is taken to adjust the company’s primary architecture and structural status.
Newcastle Investment Corp said that the decision will allow it to support its transition to leisure company. At present, Newcastle is led by entertainment and traditional golf business. Commenting on the changed status, the company also said that this conversion of status will facilitate more transparency to stockholders. There is a huge net operating loss, most of which is arrear to U.S. federal income tax associated with future earnings.
The new listing on NYSE
In its official press release, the company said that they intend to trade on New York Stock Exchange with Drive Shack Inc. under the ticker DS. This ticker shall be available on NYSE from 29 December 2016 onward. Newcastle Investment Corp also told that until the end of this year, it intends to operate with REIT status and the changed C-Corp status shall come into picture only from the next year beginning.
The future plans with C-Corp status
Sarah Watterson, the CEO and President of Newcastle Investment Corp stated that the change in status is indicative of company’s commitment towards exploring new opportunities in golf and entertainment industries.
The newly converted company will remain subject to taxation under usual U.S. federal income tax. Going further, the company also said that the huge losses that also include income tax to the body need to be settled in future.
Apart from being the C-Corp, the company also decided to execute its plan of one-year tax benefits preservation. This plan will allow Newcastle Investment Corp in preserving the losses and limiting them, given the company experiences a change in ownership as well.