Dream Machine

[Bruce A Thompson]

The dividend.

NFI is committed by IRS regs to remain a REIT until 1/1/08. They only announced their intention to de=reit but cannot make the change until then.

The $4 per share divi is from the '06 profits already banked. It must be declared by mid September and paid in full by December 31 in order not to be heavily penalized by the IRS.

Also, 90% of all profits from 2007 must be paid under the same rules next year.

After 1/1/08, the REIT accounting will go away and GAAP will take over. The dividend will then qualify for the lower tax rate for qualified dividends.

The news is just peachy.

BT