Columbia Property Trust, which was formerly named Wells REIT II, just filed an 8-K that notified investors it has hired investment bankers and attorneys to prepare the REIT for listing on a national exchange. As part of the preparation, Columbia has suspended its dividend reinvestment plan and share repurchase plan. These steps are normal as a non-traded REIT moves to liquidity.
Columbia announced a net asset value per share of $7.33 late last year. It's my opinion that Columbia's valuation process is one of the most conservative - little management input on value calculations - of non-traded REITs, and I'm curious to see market reaction to the listing. Columbia has approximately $5.4 billion of investor equity (~$6.1 billion in its offering, less ~$700 million of share redemptions), and originally offered its shares at $10.00 per share.
Today's notice to investors did not give any information on timing, although suspension of share repurchase and dividend reinvestment indicates to me a listing sooner rather than later; nor did it mention whether a listing would be immediate or staged over time in tranches, like Piedmont Office Realty Trust (Wells REIT I) used when it listed; or whether Columbia plans to use some form of tender offer to support the listing price.
Subscribe to:
Post Comments (Atom)
1 comment:
While a big economic actor stop investments to move the money from production to finance a big macroeconomic problem is being show. I have traveled a lot because of my work and I saw many crisis. The biggest I saw was in Argentina in 2001, I was living in a buenos aires apartment. Production fall in 1995, and never recovered, finance business was great but due to economic crisis in other continents the finance sector escaped from Argentina and as they were no industry left the peso collapsed and 30% of populations lost their jobs.
Of course this is not the same, but no economy may live if the financial sector is bigger than the real economic sector.
Post a Comment