Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Friday, 24 September 2010

Inland American REIT Resets Share Value to $8.03

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

Inland American Real Estate Trust has reset the value of its common shares to $8.03.

That is down from the $10 that the shares have sold for since the Oak Brook,, Ill., non-traded REIT was launched in 2005.

It reset the value in compliance with a policy that requires REITs, whose shares are not publicly traded on exchanges, to establish per-share prices that more accurately reflect the value of their assets.

Those REITs, whose shares generally are marketed for around $10 apiece, must reset share values 18 months after closing their initial rounds of equity-raising, according to the policy set by the Financial Industry Regulatory Authority. Inland ended its initial capital-raising effort in April 2009.

In a regulatory filing, the REIT called the reset value "a snapshot in time" that does not necessarily reflect the long-term value of its shares.

"We believe the current downturn in the economy has depressed the value of our assets and hence the estimated value of our shares," it said. "The value of our shares will likely change over time and will be influenced by changes to the value of our individual assets as well as changes and developments in the real estate and capital markets."

Among the other REITs that have reset values are Behringer Harvard REIT I, which reset its shares to $4.25 in May, and KBS REIT, which reset its value to $7.17 late last year. Their shares also had traded at $10 each.

Inland American plans to re-evaluate its portfolio and reset its per-share value annually, beginning Dec. 31, 2011.

The REIT, managed by Inland Real Estate Investment Corp., owns 980 properties. Its portfolio includes 21.6 million square feet of retail space, 10 million sf of offices, 15.9 million sf of industrial space, 10,154 multifamily units and 15,146 hotel rooms.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.

Copyright © 2010 Commercial Real Estate Direct www.crenews.com


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: REITS -general (REITS), Stock/Equity Offerings (IPO)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
  • Company: Inland Real Estate Corp.
Read 407 times

Data Digest







Top Bookrunners
Private-Label CMBS - FY2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 27.1  23,479.37 26.3
JPMorgan 18.6  13,752.01 15.4
Wells Fargo 17.2  13,085.05 14.6
Goldman Sachs 9.0  7,896.25 8.8
Citigroup 9.1  7,526.97 8.4





cppichart FP





Top Loan Contributors
Private-Label CMBS FY2014
Lender Vol $mln MktShr%
Deutsche Bank 14,005.13 16.0
JPMorgan 11,440.63 13.0
Wells Fargo 5,849.16 6.7
CCRE 5,750.69 6.6
Citigroup 5,604.13 6.4





  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds