Zayo is continuing to study the possibility of converting its tax structure into a real estate investment trust (REIT). Preliminary investigation has revealed certain advantages. The company is now engaging with the IRS to seek clarification and has begun to execute the organizational changes that are required to operate as a REIT, including the realignment of its business segments to clearly delineate the leasing of network assets from ancillary services, which includes the separation and potential divestiture or deconsolidation of Zayo’s Allstream business segment.
At Zayo, we have a long and successful track record of creating shareholder value,” said Dan Caruso, chairman and CEO at Zayo. “Creating the optionality to convert to a REIT is potentially another avenue of value creation and is a high priority for Zayo, although the timing and probability of conversion remains uncertain.”
Separately, Zayo also disclosed that president and COO Andrew Crouch has resigned from the company, effective immediately.
