- While mortgage REITs won't see a whole lot of benefit from the cut in the corporate rate, their generally high-income investors will get more favorable tax treatment on the dividends they receive (assuming their holdings aren't already in Roth-type accounts), says KBW's Bose George.
- Maxim's Michael Diana agrees, and names a few positively-affected names: AGNC Investment (NASDAQ:AGNC), Manhattan Bridge (NASDAQ:LOAN), MTGE Investment (NASDAQ:MTGE), New York Mortgage Trust (NASDAQ:NYMT), and Two Harbors (NYSE:TWO).
- Not benefitting? Arlington Investment (NYSE:AI), as it's a C-corp. As for Ellington Residential (NYSE:EFC), the tax bill could be a net loss to its investors, as it's not a REIT and not a C-corp, but instead a partnership. That might explain the leg down in the past few sessions to a new multi-year low.
- Source: Bloomberg's Felice Maranz
- ETFs: MORL, REM, MORT
- Now read: 10%-Yielding REIT, Book Value Up, Earnings Coming Under Pressure
Original article