REIT Conversion Analysis

The Ipreo Blog has written a fair amount about REITs, typically in the context of IPOs.

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.

Excerpt:

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.

Read the Ipreo Special Report: REIT Conversion Analysis