Toys 'R' Us: No Game Changer For Vornado Realty

The IRS has tightened up the REIT laws since the Seritage spin, making it impossible for a C-corporation to spin off real estate (into a REIT); however, Vornado could buyout its partners and move to create a Toys “R” Us REIT . Vornado could even call the name of the new REIT, Dividends “R” Us.

[According to Debtwire](https://www.forbes…

The suggestion of bankruptcy has prompted ratings agency S&P Global to downgrade the company’s credit rating by one notch to “CCC+” from “B-” and warn of another possible downgrade.