Shopping center owner exiting public market
San Antonio Business Journal - by Tricia Lynn Silva
A Houston-based real estate investment trust (REIT) that is currently publicly traded and active in the local retail market plans to go private.
The firm has notified the NYSE Euronext Exchange (NYX, formerly the American Stock Exchange) of its plans to withdraw its Class A common shares from listing. AmREIT also announced that its Board of Trust Managers has approved the plan.
AmREIT intends to file a Notification of Removal from Listing with the Securities and Exchange Commission on or after Dec. 11. The company expects trading to cease on or after Dec. 19.
“For several years, we believe there has been a substantial disconnect between the underlying value of our portfolio of Irreplaceable Corner Properties and the market price of our stock,” stated AmREIT CEO H. Kerr Taylor. “... We must simplify our capital structure so we can access capital to fund growth and provide superior long-term returns to our investors. As an initial step in this process to benefit all shareholders, our board has unanimously decided to privatize our company by discontinuing trading of our Class A shares on the NYX.”
The simplification of AmREIT’s capital structure is part of a larger, multi-phase master plan known as Vision 2010 — a strategic initiative aimed at building on the value of its real estate throughout the country.
“Our properties are located in three of the top seven job growth markets in the U.S.,” Taylor says. “Our management team is seasoned and has a track record of making prudent moves in difficult times.”
The top markets in which AmREIT (AMY) has a presence are Dallas, Houston and San Antonio/South Texas.
In San Antonio, AmREIT’s holdings include four shopping centers: Bandera Plaza in Northwest San Antonio; Olmos Creek and Village on the Green on the North Central Side; and South Bank On the Riverwalk in downtown San Antonio.
AmREIT’s stock closed at $2.41 as of the end of the trading day Dec. 3. Over the past 52 weeks, the stock has traded between $2.30 and $8.40 per share.
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