Steven Reiman
Long/short equity, value, research analyst, small-cap

Why I Sold Gramercy Property Trust

I have written two previous articles on why I had thought Gramercy Property Trust (NYSE:GPT) was undervalued. Due to the company's recent capital raise, my investment thesis has changed significantly and I have subsequently exited my position in the company. Below are the major reasons behind this decision.

Management Believes Shares Are Fairly Valued

REIT's raise investment capital through equity issuances all the time as it is the only way they can grow since 90% of their income must, by law, be distributed to shareholders. However, based on Gramercy's recent capital raise, we cannot escape the logic that one of the two below statements must be true:

1. GPT shares were fairly valued at the time of...

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