Two REITs Test Publicly Traded Waters

Amid a protracted IPO drought, two real estate investment trusts (REITs) are testing publicly traded waters. Los Angeles-based office landlord Maguire Properties (MPG) went public Wednesday at $19 a share. Maguire isn’t yet a REIT, but the firm is seeking such status. The other real estate firm, American Financial Realty Trust (AFR) also went public Wednesday, opening at $12.50 a share. AFR owns bank properties throughout the United States.

Article Tools

Latest News

More Latest News

Maguire Properties owns several trophy office buildings in L.A., among them the Library Tower (formerly called the U.S Bank Tower). The IPO of 36.5 million shares was carried out by joint underwriters Credit Suisse Group’s (CSR) Credit Suisse First Boston and Citigroup, Inc. Maguire Properties offers investors a quarterly dividend payment of 40 cents a share. That, along with a $19 a share price, gives Maguire an 8% yield—higher than the 6.8% average yield of NAREIT’s composite index.

That 8% yield may sway investors from some sobering facts about the company, though. According to the Wall Street Journal, risks cited in the firm’s SEC filing include roughly $1 billion worth of debt that will follow the offering. And Maguire Properties also is not profitable: during the first quarter of this year the company lost $1.5 million on a pro-forma basis on revenue of $65.8 million.

But Les Loffman, national director of REIT services at Ernst & Young, says that these two IPO’s bode well for the real estate business, and the economy in general. "These two IPO’s raised $1.5 billion total, which is more than all IPO’s so far this year," he says. Loffman believes that these two REITs going public signifies that Wall Street is gaining confidence in the near-term future of real estate, especially since REITs have held up better than most other investments this year. "These are all very good signs for real estate," he adds.


Acceptable Use Policy
blog comments powered by Disqus

Photo Galleries

New York's Star Deals

http://nreionline.com/images/nyc_big_deals_homepage_thumb.jpgThe city that never sleeps is also the city that never stops growing, not even in the midst of recession. And deals, both bold and unprecedented, continue to be done. Check out image of New York's big deals.

Hudson Yards Development

http://nreionline.com/photo_gallery/hudson_yardsCheck out images for Coach's new global headquarters, which will anchor the initial tower of the Eastern Rail Yards site within the 26-acre mixed-

Videos

JLL at ICSC 2012

http://nreionline.com/video/bjorson_thumbnail.jpgCheck out these videos from JLL at ICSC 2012 in Las Vegas...

 

Click here to view more videos.


Blogs


http://nreionline.com/blog/schein_blog_headshot.jpg

Real Vox

Traffic Court

The Full Nelson

Events

Strategic Real Estate Investment Conference

Date: Thursday, June 7, 2012
Time: 7:45AM-6:00PM
Place: 1290 Avenue of the America, 5th Floor
What: A full-day event exploring portfolio diversification through opportunistic and alternative investments....

Click here to view more events...

http://nreionline.com/nrei-300x125-house-091211-resourcebook-jpg.jpg

This Week's Most Popular

Current Issue

http://nreionline.com/april2012_cover.jpg

NREI Newsletters



Retail Traffic Newsletters

View NREI Newsletters

NREI Newsline
NREI Seniors Housing Finance and Development
NREI The Green Sheet
NREI Institutional Outlook
NREI Distressed Real Estate Strategies
NREI Daily/Central
NREI Daily/New York
NREI Daily/New Jersey
NREI Weekender
NREI Global Real Estate Monitor
REIT Insider
Retail Traffic Online
The Site Optimizer

Join the Conversation