Equinix board approves REIT conversion
Equinix’s board of directors have unanimously approved the data centre operator’s conversion to a real estate investment trust (REIT) for federal income tax purposes from January 1 2015.
As part of the conversion, Equinix is seeking a private letter ruling from the US Internal Revenue Service, related to some technical tax issues.
“Based on existing legal precedent, opinions of counsel and the fact that many other data centre companies currently operate as REITs,” the company said that it believes that it will qualify for taxation as a REIT and that it will receive a favourable private letter ruling by early next year at the latest.
“We are pleased with our current business momentum, and the REIT structure positions us well to continue to deliver profitable global growth, while providing world-class facilities and services to our customers through Platform Equinix,” said Steve Smith, its CEO.