Post by
duplex5696 on Dec 23, 2021 3:44pm
Are Some Reits Going ATM(for new issues)
There has been some movement by Reits to go the ATM (at the market ) route to raise new funds as opposed to the current broker led discounted subscriptions. Recently it appears that investors are becoming more dissatisfied with Reits that use the latter route. It is taking much longer for companies to recover back to their pre-new issue price. The drag in this process appears to be getting longer. Also the ATM avoids the cost of broker commissions. Some brokers attempt to push the traditional method by encouraging companies to increase the amount of their subcriptions. Its not the broker who will suffer the consequences but the investor and often the companies themselves. It is harder to increase your credit line when your market cap is lower.
Any Thoughts ?