malach hamovess

Mack-Cali Late to the (Follow-On) Party

CLI's wait of a few weeks after the others sold additional equity was quite fortuitous. It sold at a much more favorable price with either a greater amount of proceeds or far less dilution than had it sold 2-3 weeks ago.

Now we know where all that money "sitting on the sidelines" is going; it's recapitalizing the REITs.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

good grief!! didn't they get rid of the wall between investment banking and corporate banking just so banks could sell stock to the public to get their loans repaid?

haven't you been paying attention?

Wall Street Already Back to Its Criminal Ways?

conspiracy theories abound. yet the increase in the price of Kimco was so great that there must be a lot more to it. The Kimco equity raise changed the whole game on the company. While it may have diluted the equity, it also guaranteed that the company has sustainability and that it wouldn't face liquidity or debt crises. Note that three equity REITs have recently raised 500-700 million each in secondary offerings, and each has had a major price increase subsequent to the raise (KIM, SPG, AMB). The markets perceive these companies a lot differently when their two to three year outlook isn't subject to the cloud of major debt maturities.

The further accusation that these issues are "dilutive" only holds true if one wants to live on the wire. Many of these REITs are so debt-heavy that an infusion of capital is a corporate imperative, and that isn't dilutive, it's curative.