In today’s briefing:
- The Situation Is Different for REITs that Rely on Capital Increase, Despite the Same Low P/B Issue
The Situation Is Different for REITs that Rely on Capital Increase, Despite the Same Low P/B Issue
- Repurchasing investment units, increasing dividends through property sales, and increasing EPS through negative goodwill of M&A seem to be the share price raising measures necessary for capital increase for growth.
- When increasing capital amid stagnated REIT stock prices, it’s questionable whether the picture that is drawn after capital increase is reasonable in the face of rising required returns by investors.
- When the profitability of REIT investment companies is in question, it is not surprising that activist investors will focus on management issues, including cost of capital or corporate governance.
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