stapled stock

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Stapled Stock

Shares of two publicly-traded companies operating under the same management that are traded as if they were one stock. Most of the time, certificates for each stapled stock are printed on the same stock certificate. Stapled stocks are put together usually if one share pays higher dividends while the other has the higher potential for appreciation. Variations on stapled stocks include HOLDRS, which issue stocks in more than two companies as one certificate. Stapled stocks are also called paired shares.

stapled stock

stapled stock

A relationship between a real estate investment trust (REIT) that owns real property,such as a hotel,and a standard corporation that leases or manages that property,ostensibly for a profit.But the arrangement is set up so the stockholders are the same for the REIT and for the operating company—the stocks are “stapled”together.As a result,they hypothetically do not care which company makes what size profit, as long as the aggregate profit is an acceptable number.There is one problem: the REIT profits are not taxable at the corporate level, but the corporation profits are taxed.As a result,the ideal situation would be for the operating company to pay exceptionally high rent, forcing it to just barely break even every year and owe no taxes, while the REIT collects high rents, makes large profits, and pays no taxes. Of course, distributions to shareholders are taxed as income to the hareholders for either entity.The practice was once widespread but now represents a now-closed loophole that is seldom encountered except for older transactions. It is necessary to understand the concept, however, because there are always novel arrangements attempting to accomplish the same goals and that describe themselves as similar to stapled stock.
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Unibail-Rodamco-Westfield stapled shares are listed on Euronext Amsterdam and Euronext Paris (Euronext ticker: URW), with a secondary listing in Australia through Chess Depositary Interests.
Under the proposed EUR13.4 billion acquisition (not including EUR400 million of transaction fees), Westfield shareholders will receive approximately EUR8.7 billion of equity in the form of stapled shares and about EUR4.8 billion of cash.
The full effect in 2019 of the consideration to fund the Westfield Transaction, mainly the stapled shares issued, exceeds the benefit of the full year contribution from Westfield.
Adjusted Recurring Earnings per Stapled Share ("AREPS") of EUR12.92
Adjusted recurring earnings per stapled share grew +7.2%, exceeding guidance.
Going Concern NAV per stapled share increased to EUR233.90 as at December 31, 2018, up +EUR14.70 (+6.7%) compared to December 31, 2017.
Class A shares (the "Stapled Shares") and jointly be admitted to trading on Euronext Amsterdam (market of reference) and Euronext Paris.
228-99, 2 of the French Commercial Code, that as from the completion of the Transaction on June 7, 2018, each ORA will be redeemable by the delivery, to the ORA holder, of Stapled Shares, instead of Unibail-Rodamco SE shares, on the basis of the then applicable redemption ratio.
The Prospectus, for the admission to trading on the regulated markets of Euronext Paris and Euronext Amsterdam of Stapled Shares, was approved by the AMF and AFM on March 28, 2018.