Tuesday, 17 July 2018

Monetising real estate assets could lead telcos down REIT path

By Mary Lennighan, Total Telecom
Friday 24 May 13

Telecoms operators worldwide seen following in the footsteps of U.S.-based Cincinnati Bell and monetising their data centres to fund investment elsewhere.

Working in a capital-intensive business in difficult economic times means life is no picnic for the world's telecoms operators at present. But they have a number of assets at their disposal that could help them through, including significant real estate footprints that many are now seeking to monetise. U.S.-based Cincinnati Bell in January spun off its data centre business into a publicly-traded real estate investment trust (REIT), essentially an entity that owns and manages property on behalf of shareholders and is required to distribute 90% of its taxable income back to shareholders without being subject to corporation tax…

Working in a capital-intensive business in difficult economic times means life is no picnic for the world's telecoms operators at present. But they have a number of assets at their disposal that could help them through, including significant real estate footprints that many are now seeking to monetise. U.S.-based Cincinnati Bell in January spun off its data centre business into a publicly-traded real estate investment trust (REIT), essentially an entity that owns and manages property on behalf of shareholders and is required to distribute 90% of its taxable income back to shareholders without being subject to corporation tax…

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