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Our experts frequently write blog posts about the findings of the research we are conducting.

Displaying 41-50 out of 66 results for "REIT".

Valuations of Non-Traded REITs

(May 2013)

Earlier this week, the Investment Program Association (IPA) presented their guidelines for the valuation of publicly registered non-listed REITs. According to the IPA, these guidelines are supposed to "enhance the independence of the valuation process" and "enhance the quality of valuation disclosures to the investing public." For a discussion of the guidelines, see Brian Louis's recent story on Bloomberg.com.

Non-traded REITs -- real estate investment trusts that are registered with the SEC...

Why So Many REITs?

(Apr 2013)

Real estate investment trusts (or REITs) have been all over the news recently. The value of many traded REITs has increased dramatically as the US housing market has recovered (see, for example, Vanguard's REIT ETF VNQ which is currently trading at or above pre-crisis levels). Many mortgage REITs have been making headlines for their rapid growth and potentially adverse effects on the financial system. And of course, non-traded REITs continue to see criticism for reasons we've highlighted...

SEC Litigation Releases: Week in Review - March 15th, 2013

(Mar 2013)

Court Orders Former Prudential Securities Broker to Pay Over $763,000 Related to Deceptive Mutual Fund Market Timing Practices
March 13, 2013, (Litigation Release No. 22643)
A final judgment was entered against Frederick J. O'Meally, a former registered representative of broker-dealer Prudential Securities Inc, for allegedly using "deceptive practices to evade blocks by mutual fund companies on his market timing trading." The judgment orders O'Meally to pay over $763,000 in disgorgement,...

More Trouble for Inland American Real Estate Trust

(Mar 2013)

Inland American's March 2012 quarterly report revealed that the company was the subject of an ongoing SEC investigation (we wrote about this in our blog post titled "SEC Investigation into Largest Non-Traded REIT May Be A Sign of Things To Come"). Inland American's 2012 annual report further disclosed that several stockholders have sued the company seeking recovery of damages (View the SEC filing). According to the information in Inland American's SEC filings, both the SEC investigation and...

More on Non-Traded REIT IPOs-via-Mergers

(Feb 2013)

So far, two large non-traded REITs (Cole Credit Property Trust II and American Realty Capital Trust III) have merged with traded REITs. Merging with a traded REIT is one way for these otherwise largely illiquid investments to bring their assets to market and allow their investors to cash out. The more traditional 'exit strategy', and the strategy anticipated by most non-traded REIT offering documents, would be to have an independent initial public offering (IPO). So why are some non-traded...

Another Non-Traded REIT to be Absorbed into a Traded REIT

(Jan 2013)

Spirit Realty Capital, a large traded real estate investment trust (REIT), announced on Tuesday that it has acquired Cole Credit Property Trust II (CCPT II), a non-traded REIT. This is the second major merger between a traded and non-traded REIT; we covered the first last month. Like the previous deal, it appears that the non-traded REIT is the larger entity, but the resulting company will be market traded and assume the traded REIT's brand and ticker (SRC).

A major question for non-traded...

SLCG Research: Tenants-in-Common Interests

(Jan 2013)

While we've spent a great deal of time talking about non-traded REITs on this blog, so far we've given less attention to another kind of real estate investment that has also been sold to investors based on questionable merits: tenants-in-common (TIC) interests. TICs are private placement investments that were very popular during the real estate boom of 2002-2008, but have suffered tremendously when the markets turned sour. We discussed TICs in our paper on non-traded REITs, but we felt that...

Traded and Non-Traded REIT to Merge

(Dec 2012)

Earlier this week, American Realty Capital Properties (ARCP), a traded REIT under the American Realty Capital (ARC) family of real estate investments, announced that it will be merging with American Realty Capital Trust III (ARCTIII), a non-traded REIT in the same family. Investors in ARCTIII will be entitled to either $12.00 in cash or $12.26 per share in ARCP stock, a significant premium over the $10 per share purchase price.

This merger is remarkable for a number of reasons. While the...

Another Non-Traded REIT Revises Share Value Downwards

(Dec 2012)

Following in the footsteps of several other large non-traded REITs, Wells Timberland REIT has revised its estimated per share value down to $6.56, from approximately $9.50 reported in the company's last 10-Q. The shares were sold for $10.00 per share starting in August 2006 and as late as December 2011.

Non-traded REITs are largely illiquid real estate investments that can be sold to retail investors but are not traded on major exchanges (see our white paper on non-traded REITs for details)....

Massachusetts Securities Regulators Getting Tough on Non-Traded REITs

(Dec 2012)

LPL Financial, the largest independent broker-dealer in the US, is being sued by Massachusetts securities regulators for "numerous regulatory violations in connection with the sale of non-traded REITs." We have covered non-traded REITs extensively on this blog, as well as in a detailed working paper, and it appears that many of the problems that have been identified with these products are finally attracting attention from regulators.

According to the complaint, the action is specifically...

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