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Stock impact report

Shopping Center REITs Arbitrage Public To Private Asset Pricing Spread [Seeking Alpha]

Kite Realty Group Trust (KRG) 
Last kite realty group trust earnings: 2/18 04:20 pm Check Earnings Report
US:NYSE Investor Relations: ir.kiterealty.com
Company Research Source: Seeking Alpha
This strategy boosts AFFO per share and unlocks value, as REITs' assets trade at higher private market values than their deeply discounted stock prices imply. Investors can benefit from buying high-quality shopping center REITs at 7.5%-9% implied cap rates, with potential for price appreciation, buyouts, or rising dividends. TheaDesign/iStock via Getty Images Shopping center REITs are well positioned to execute an arbitrage that swiftly increases earnings and value per share. There is a lot in that sentence so let's unpack it. We shall begin with some background detail on the mechanics of arbitrage and how it relates to REITs in the present. We will then follow with examples of the REITs that are currently executing this arbitrage. Arbitrage mechanics An arbitrage, in the purest sense, is when the same asset is trading at different prices on different markets. Most pure arbitrages close quickly because there is immediate profit in closing them out. Consider if XYZ was t Show less Read more
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