AAD is a stapled security consisting of 1 unit in the Ardent Leisure Trust and 1 share in Ardent Leisure Limited.
Ardent Leisure Trust holds the freehold and leasehold interests of the leisure properties, which are leased to Ardent Leisure Limited which operates the properties as leisure businesses.
The Trust does not pay corporate tax. Instead, the taxable income of the Trust is taxed in the hands of the individual security holders. Therefore, the Trust must distribute at least all of its taxable income to security holders.
Most of the profit of the Stapled Group is held in the Trust due to the rent on the internal lease between the Trust and Ardent Leisure Limited.
Ardent Leisure Limited has historically never paid out a dividend. The distributions paid out by Ardent are paid out by the Trust.
This is all described on Ardent's website. See http://www.ardentleisure.com.au/Investor-Centre/Overview.aspx
AAD Price at posting:
$1.09 Sentiment: None Disclosure: Held
