Philip Blumberg Blog

Another answer..

Gerald,

I wouldn’t offer stock picking advice or my SEC lawyers would be in an uproar.  But those candidate REIT’s that are known to be undergoing evaluation for takeover, usually are, because of the premium to stock price of the underlying assets.  Like any takeover targeted company that also bodes well for share value to increase. 

The real estate and financial press often comment on those likely REIT takeover targets.  And those in the industry are sometimes aware of impending possible transactions eg. Crescent Real Estate likely sometime this year.

Philip

Response to questions

Spencer,

That’s clearly what shareholder’s feel at EOP as stock price has risen as the LBO bidding competition heats up.

So yes, there is a pure M&A investment strategy for a takeover sector like REIT’s.

Philip