Posts related to ‘REIT’

Trouble in Property Syndicates (TPGI, AVI)

We have two deals which have been called off in the land of mixed use properties as a secondary by Thomas Properties Group, Inc. (NASDAQ: TPGI) and one was the IPO which was supposed to price from Aviv REIT Inc. (NYSE: AVI).

Thomas Properties Group, Inc. (NASDAQ: TPGI) announced last night that that it has postponed its secondary offering of 22 million shares of common stock.  The reason, “due to unfavorable market conditions.”… management said that it does not consider the current market price of the common stock to be reflective of its inherent value.

Aviv REIT Inc. was supposed to be on the IPO deck.  The REIT, real estate investment trust, focuses on healthcare properties.  The IPO was on deck to price last night or this morning as the company and shareholders planned to sell 16.6 million shares in an indicated price range of $17 to $19 per share.  We had heard only mixed information, and no date nor new effort terms have been indicated.

If you have been tracking how this 2009 IPO market went from Winola to something far worse, this may not be a surprise.  Also worth noting is that of the deals we track for 2009 we have more that are busted than those which are higher.

JON C. OGG

Posted on: November 4, 2009 – 9:40 am in IPOs, REIT, Secondary Offering, ,

Can Hyatt IPO Beat Current IPO Doldrums? (H, HOT, MAR)

Hyatt LogoLate Friday night, after a really poor market day, Hyatt Hotels issued an amended S-1 for its planned initial public offering.  Because of last week’s market volatility, we are getting mixed signals about both the ultimate pricing and about which night the hotel operator will price its deal.  The deal is still set for 38 million shares in a price range expected as $23.00 and $26.00.  The company will also trade under the ticker “H” on the NYSE.

Hyatt is controlled by the Pritzker family.  It has a huge underwriting syndicate with Goldman Sachs as lead manager.  Co-managers are listed as Deutsche Bank, J.P. Morgan, Bank of America Merrill Lynch, Citigroup, UBS, HASBC, Piper Jaffray, Wells Fargo, and Scotia Capital.  Other companies also listed on the prospectus are Robert W. Baird, Loop Capital Markets, M.R. Beal, Ramirez & Co., Siebert Capital Markets, and The Williams Capital Group.  The underwriting group has an overallotment option to purchase up to an additional 5.7 million shares of common stock.

The mid-point of this IPO will generate roughly a $4.11 billion market cap, and the net tangible book value as of September 30, 2009 was approximately $4.5 billion (roughly $26.98 per share).  This is less than 80% of the value of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) $5.4 billion market cap and less than half of Marriott International, Inc. (NYSE: MAR) $9 billion market cap.
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Posted on: November 2, 2009 – 12:45 pm in Entertainment, IPOs, Private Equity, REIT, , ,

IPO Market Showing Concern (MG, TLCR, BSBR, EM, CLNY, RA, FIG, ARI, VITC, ECHO, CPC, GAME, SNDA, CYOU, SOHU, CPIX, OMER, BX)

bull-and-bear-image2It was just in August that practically every single initial public offering was trading above its IPO price.  The market had rallied significantly, and still rallied after that to just this week have a 10,000 handle on the DJIA.  Investors started warming to more risk-based capital, and investment bankers were finally able to get deals done.  Even waves and waves of secondary offerings were able to be absorbed merely by brokers being able to tell clients they could buy stock at an implied discount to the average price over the few days before.  But suddenly, the IPO market has turned out some real dogs with fleas.

Mistra Group (NYSE: MG) priced its offering at $12.50 on October 7.  While it traded as low as $12.17, it has escaped the hangman’s file of ‘busted deals’ as it is now a $13.51 stock.  The one thing that may have helped was that it priced under an initial range of $14 to $16 per share.  Talecris Biotherapeutics Holdings Corp. (NASDAQ: TLCR) also went into the busted category temporarily after hitting a low of $18.01 after a $19.00 pricing.  Fortunately, it is up at $19.97 so is also now out of the hangman’s eyes.  Still, an 8% gain and a 5% gain in this market might leave some investors feeling lonely.  Banco Santander Brasil S.A. (NYSE: BSBR) was a very large IPO of over 500 million shares at an implied $13.40, and this one got out of the “busted IPO” dungeon on Thursday and closed at $13.51 on Friday.  Before Thursday it had spent its 6 prior trading sessions as a busted IPO.

Emdeon Inc. (NYSE: EM) had traded above $18.00 briefly after its IPO priced at $15.50 in August. But now the healthcare revenue and payment cycle management solutions provider, which is supposed to be a healthcare winner ahead, closed down at $15.35 on Friday  and had been slightly lower during the week.  This was effectively a re-IPO as Emdeon had been public before after General Atlantic Partners acquired it and it also received an investment from Hellman & Friedman. It also has ties to James Clark, the Netscape founder and was part of Healtheon.

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Posted on: October 17, 2009 – 8:45 am in ADR, Biotech, Business Services, China, Editor's Picks, Entertainment, IPOs, Mergers and Buy Outs, Private Equity, REIT, Secondary Offering, Trading Alert, Value Investing, , , , , , , , , , , , , , , , , ,

IPO ALERT: China Real Estate Information Involves Other Companies (CRIC, EJ, SINA)

china mapChina Real Estate Information Corporation (NASDAQ: CRIC) has priced its 18 million share initial public offering at $12.00 per share.  While this is not an easy structure, this IPO has ramifications for two other big Chinese public companies.  CRIC is a subsidiary of E-House (China) Holdings Limited (NYSE: EJ) and it will merge with the online real estate business of SINA Corporation (NASDAQ: SINA) effective as of the closing of CRIC’s IPO.
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Posted on: October 16, 2009 – 9:21 am in ADR, Business Services, China, Mergers and Buy Outs, REIT, , ,

Investors Turn Against REIT IPOs (CLNY)(ARI)(FSQR)

house

Pathetic demand for two real estate investment trust IPOs today speaks to continued worries that commercial mortgage-backed real estate may be the next leg of the financial stool to get kicked out from under the market.

Colony Financial (Nasdaq: CLNY) and Apollo Commercial Real Estate Finance (NYSE: ARI) each roughly halved their stock offerings today. They had been expected to raise about $900 million, but together they will now raise only $450 mln.

Along with a third REIT IPO expected to price Tuesday, Foursquare Capital Corp. (Nasdaq: FSQR), the three IPOs each plan to invest heavily in the CMBS market, with help from loans offered by federal programs including the TALF and PPIP. Read More »

Posted on: September 23, 2009 – 11:50 am in REIT, , ,

Chimera & Annaly Dividend Hike, Profits In Mortgages (CIM, NLY)

Money Stack PicInvesting in mortgages might not be as bad as many thought.  Chimera Investment Corporation (NYSE: CIM) has already raised more capital on more than one occasion since coming public in 2007 when the mortgage arena was in the process of going from weak to bottomless.  We were intrigued by its vulture investing intentions as it bought up distressed mortgages, particularly as it was tied to the very successful Annaly Capital Management, Inc. (NYSE: NLY).  Despite the notion that Chimera became a vulture too soon and well before any bottom could be found in sight, Chimera must be doing pretty well again.  Ditto on Annaly.  This mortgage REIT status requires each to pay out 90% of its income and Chimera just hiked its dividend to $0.12 for the Q3-2009 period.  Annaly also just hiked its dividend payout today to $0.69, which might actually be its highest payout ever.
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Posted on: September 21, 2009 – 5:03 pm in Bonds, Dividend, Financial Stocks, Housing, REIT, ,

HCP Boosts Cash Raise (HCP)

Money Stack ImageHCP, Inc. (NYSE: HCP) is raising more cash than expected.  The company has priced a secondary offering of 15.5 million shares of common stock at a price per share of $24.75, above the 11.5 million shares originally indicated in the offering.  The release says the increased size was due to investor demand.
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Posted on: August 5, 2009 – 9:29 am in Healthcare, REIT, Secondary Offering,

Two IPO’s Hit: Globe Specialty Metals & PennyMac (GSM,PMT)

money-stack-imageWe have two IPO’s today, which sort of got lost in the earnings season shuffle.  Despite the recent market strength and the performance of recent IPO’s, both of these have been disappointing.

Globe Specialty Metals (NYSE: GSM) priced 14 million shares at $7.00, at the low end of its $7.00 to $9.00 range.  We also have a 16 million share IPO of PennyMac Mortgage Investment (NYSE: PMT) at $20.00 per share, although this was cut from 20 million shares.
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Posted on: July 30, 2009 – 8:51 am in IPOs, Metals, REIT, ,

Commercial Real Estate Woes Back in Focus (JPM, BXP, LRY, OFC, SPG, PLD, DLR, AMB, CBG)

Burning Money PicThis morning’s earnings call from J.P. Morgan Chase & Co. (NYSE: JPM) echoes some of our concern of what is coming in the next wave of real estate problems which could cause the next wave of economic problems.  Commercial real estate.  This forecast by Jamie Dimon, along with profit taking in a down-market morning, is acting to hit large-scale commercial property stocks in REITs and in operating companies.  These are not the only stocks by any means in these sectors, but our go-to universe includes Boston Properties Inc. (NYSE: BXP), Liberty Property Trust (NYSE: LRY), Corporate Office Properties Trust Inc. (NYSE: OFC), Simon Property Group Inc. (NYSE: SPG), ProLogis (NYSE: PLD), Digital Realty Trust Inc. (NYSE: DLR), AMB Property Corp. (NYSE: AMB), and CB Richard Ellis Group, Inc. (NYSE: CBG).  All of these are getting hit this morning.  We have provided some detailed information, brief technical analysis, and charts for each below.
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Posted on: July 16, 2009 – 10:02 am in Banking, Business Services, REIT, , , , , , , , ,

Dividend Surprise At MFA (MFA)

Money Stack ImageMFA Financial, Inc. (NYSE: MFA) is a surprise on the dividend front this morning. The company is a REIT that invests in mortgage-backed securities, and while that sounds as though it has all the qualifications for problems the company is actually raising its dividend again.  This time by 14%.

This may seem like a small raise, but you have to consider the ills of the sector.  In December, the company cut its dividend by a penny to $0.21.  It raised its dividend in April to $0.22.  And the new rate today is $0.25.  At the end of 2007, this rate was only $0.10 per quarter.
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Posted on: July 1, 2009 – 8:09 am in Banking, Bonds, Dividend, Financial Stocks, REIT,

Mid-America Ready To Acquire More Apartment Projects (MAA)

money-stack-imageMid-America Apartment Communities Inc. (NYSE: MAA) has a new investment partnership it plans to use for making acquisitions.  The $250 million fund may be a bit misleading on the size, mainly because its partner seems to be a 10% contribution by Mid-America itself.  Here is the basic criteria and the investment goals of the fund for Mid-America:
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Posted on: June 29, 2009 – 2:11 pm in REIT,

Another Hedge Fund ETF Launches (MCRO, QAI)

IndexIQ LogoNYSE Euronext has begun trading the IQ Hedge Macro Tracker ETF (NYSE: MCRO), sponsored by IndexIQ Advisors LLC.  This marks the second product by IndexIQ Advisors to list on NYSE Arca after its IQ Hedge Multi-Strategy Tracker ETF (NYSE: QAI) launched on March 25.
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Posted on: June 9, 2009 – 9:39 am in Bonds, ETF, Emerging Markets, Financial Stocks, Index, REIT, ,

Best Performing Sectors In Last Month: Hotel REITs, Home Furnishings, Car Rentals

Based on the TickerSpy index of major industry sectors, hotel REITs had the best performance of any group measured, up almost 60%.  At the head of the industry were Diamondrock (DRH) and LaSalle Hotel (LHO).

Home Furnishing Retail was a closed second, up 55% lead by Pier 1 (PIR) and Kirklands (KRK). Read More »

Posted on: April 24, 2009 – 8:54 am in Metals, REIT, , , , , , , ,

Host Joins REITs Raising Cash (HST)

money-stack-image46Host Hotels & Resorts, Inc. (NYSE: HST) has completed a secondary offering that raised some needed cash for the company.  The hotel-REIT priced a secondary offering of 66,000,000 shares of common stock at a price of $6.60 per share.  This is actually a substantial discount to the $7.10 close on Thursday, but it will also raise some $435 million before accounting for fees and commissions.
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Posted on: April 24, 2009 – 8:34 am in REIT, Secondary Offering,

Duke Realty Joins Wave Of REITs Raising Cash (DRE)

money-stack-image33Duke Realty Corporation (NYSE: DRE) has joined in with other REIT operations in announcing the sale of common stock in order to pay down debt.  The company plans to sell 64 million shares of common stock, or 73.6 million shares if the underwriters exercise their overallotment option.  The company also has guidance and a dividend update out after the close (updated 4:28 PM EST).

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Posted on: April 15, 2009 – 3:19 pm in Dividend, Earnings, REIT, Secondary Offering,

Acadia Realty Joins REITs Raising Cash (AKR)

money-stack-image27Acadia Realty Trust (NYSE: AKR) has joined the wave of REIT entities selling stock to raise cash.  The company priced its public secondary offering of 5 million common shares at $11.95 per share. That is before any overallotments of 750,000 shares, but the size of the offering was raised in the deal from 4.5 million shares.
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Posted on: April 14, 2009 – 8:58 am in REIT, Secondary Offering,

Equity One Joins REITs In Raising Cash (EQY)

money-stack-image24Equity One, Inc. (NYSE:EQY) joined the ranks of REITs wanting to raise cash to pay down debt.  The REIT priced 6.5 million shares of common stock at $14.30 per share.  This will bring in about $89.0 million before expenses.
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Posted on: April 9, 2009 – 9:17 am in REIT, Secondary Offering,

ProLogis Scores On Financing and Secondary (PLD)

money-stack-image14ProLogis (NYSE: PLD) has successfully raised the cash it was seeking.  And then some.  The warehouse and office park owner and operator REIT had originally planned to sell 115 million shares of common stock to bolster its balance sheet, but it looks like the offering was priced rather strongly at 152 million shares at a price of $6.60 per share, a discount of about 3% to yesterday’s close.
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Posted on: April 8, 2009 – 7:55 am in Business Services, REIT, Secondary Offering,

Kimco’s Huge Stock Offering (KIM)

money-stack-image5Kimco Realty Corporation (NYSE: KIM) has priced its huge secondary offering of common stock.  The size was a lofty 91,500,000 shares at a price of $7.10 per share.  Shares closed yesterday at $7.49 and the 52-week trading range is $6.33 to $47.80.  What is interesting is that the shares of this community and shopping center REIT are not trading at any discount so far.  They are trading at a premium.
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Posted on: April 3, 2009 – 8:04 am in REIT, Secondary Offering,

Simon’s Dilution Takes Away Some Debt Worries (SPG)

money-stack-image47Simon Property Group, Inc. (NYSE: SPG) priced a secondary share offering of 15 million shares at $31.50/share.  Simon also made a concurrent offer of approximately $500 million worth of 10-year senior notes. Proceeds should total about $1 billion.  This is hitting shares, but this offering actually helps the company.

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Posted on: March 20, 2009 – 9:44 am in Bonds, REIT, Secondary Offering