Today we want to discuss something a little bit different, and that’s REIT conversion. Specifically, who buys conversions, and how does the shareholder base change?
Ipreo analyzed four recent REIT conversions – American Tower (AMT), Crown Castle (CCI), Equinix (EQIX), and Iron Mountain (IRM) – to explore how stocks that have undertaken REIT conversions have performed, and how their investor bases changed as a result of their conversions.
Results show the tendency for the stock to outperform and bring an influx of new REIT-dedicated investors.
With every stock comes a different situation, and there is no guarantee about how investors are going to react to a REIT conversion. We cannot always draw a direct line between new REIT investors and outperformance in the stock.