Huntington Bancshares - Huntington Preferred Capital

Huntington Preferred Capital

Huntington Bancshares also operates Huntington Preferred Capital, Inc. This entity serves as a Real Estate Investment Trust (REIT).

Huntington Preferred Capital was organized under Ohio law in 1992 and designated as a REIT in 1998. Four related parties own HPCI's common stock: Huntington Capital Financing LLC; Huntington Preferred Capital II, Inc.; Huntington Preferred Capital Holdings, Inc.; and Huntington Bancshares Incorporated. All these entities are tied via ownership and/or interlocking directorships to Huntington Bancshares, either directly or through Huntington National Bank.

In addition to the common stock, Huntington Preferred Capital also issued 2 million shares of preferred stock, paying a quarterly cash dividend of $0.4925 per share. This stock is largely held by the same companies as the common stock, but a small fraction of the available shares are sold on the open market.

Huntington Preferred Capital had one subsidiary, HPCLI, Inc., a taxable REIT subsidiary formed in March 2001 for the purpose of holding certain assets (primarily leasehold improvements). On December 31, 2007, Huntington Preferred Capital paid common stock dividends consisting of cash and the stock of HPCLI to its common stock shareholders. After the stock dividend was paid out, HPCLI became a wholly owned subsidiary of Huntington Preferred Capital Holdings, which holds all the shares of HPCLI.