jasonjim

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

I see nothing wrong about the transactions discussed in this article. It is normal business with a buyer beware sign. The banks win by having their loans repaid. DRE and WRI and other REITs win because they get rid of debt on their balance sheets. The purchasers of the equity offering who buy at a discount may or may not win depending upon how the market views the transaction. Since DRE and WRI and other REITs are in a much better position now to conduct their business I expect that their shares will rise, maybe considerably. So the purchasers of the new equity will win also. Everybody wins, so what is the problem here?