On August 15, 2013 Columbia Property Trust (Formerly Wells REIT 2) sent a letter to investors outlining their plan for a reverse stock split and introducing a new CFO. Here’s my summary of what’s they have to say.
Have more questions or want a second opinion?
Announcement of new CFO here: Jim Fleming new CFO of Columbia Property REIT
Link to Frequently Asked Questions here: Columbia Property REIT FAQ
Video of CEO Explaining the 4 for 1 Reverse Stock Split here: Columbia Property CEO Video
Excellent communication Joe. I really appreciate it. Big help. Keep up the great work!
Thank you David, I appreciate it.
Thanks Joe,
I appreciate the “concise” explanation(s) vs the long-winded variety. I would probably end up cutting off the long winded version!
Good info.
Thanks Sally. I felt the same way after watching the “long” version.
So does this mean I will be able to sell my shares after it goes on the IPO? And how does it effect the previous so-called closing date in 2015?
Hi Pam,
By going public they will be satisfying the closing date which also makes it possible for you to sell your shares (giving investors their money back is one of the main reasons for the closing date requirement).
Great idea to do the video, Joe. A few more of those and I might even be up to speed in understanding when we have our face to face meetings!
Thanks Ted. I’m working on it.
Thanks Joe. You have provided me more information (by far) than my financial advisor on this action. I was looking to sell off my shares but an IPO would be worth the wait to see how it is eventually valued, don’t you suppose?
Hi Gus, thank you for the comments. Everyone’s situation is different, but if selling now isn’t absolutely necessary I’d probably wait for the IPO. The prices currently being offered on the secondary market for Columbia Property REIT (and others) are low and you end up paying a pretty hefty (4-7%) transaction cost to boot. If want to discuss it more, just email me.
Indeed….I was offered approx. $14K on holdings of $18K. I can wait to see what develops with the IPO. Thanks again, Joseph.
Just received a “Distribution” check.
Unreal!
Will these continue and why now after 8 years?
Thank you;
-Rex-
It will be interesting to see the IPO impact sometime in October. Keep – Sell – Hold? The price will tell.
Hi Rex,
Columbia Property Trust (formerly known as Wells REIT 2) has paid a consistent quarterly dividend for as long as I can recall, and according to their recent comments they expect that to continue. If you’d like to contact me directly I can try to answer your question in a less public forum and figure out what you got.
thanks joe….My reading says…… dividend to be cut from 38. to 30. fourth quarter…is that correct
Hi Stu,
That is correct. The dividend is being adjusted down to .30 from .38 for the fourth quarter. It’s one of the things I discussed in yesterday’s video: http://unique-rake.flywheelsites.com/20130925/columbia-property-trust-ipo-initial-public-offering/. Also, Columbia will not be offering automatic updates for the IPO news, so I’ve created a page to consolidate what information I can find here: http://unique-rake.flywheelsites.com/columbia-property-trust-ipo-stock-split/
Thank you for concise explanation. In your expert “opinion” do you have an idea of what the nav value per share is worth.Do you think the ipo will be valued at $29.00?
Hi Alan,
The NAV valuation really won’t apply once they list the shares. While it is probably a variable in determining what they will list for, the biggest driver is what can they reasonably expect to sell the shares for. All that to say I’m not sure what they will list at, but my guess is that it will be around the $29 range, otherwise the 4 for 1 split would have been pointless. Post IPO it’s hard to say what the shares will do, at least after the first 90 days.
My statement shows— Total inceptions to date distributions way more than I have received and it doesn’t reflect in the total. I am currently away from home and I tried to call but keep getting put on hold. I don’t want to use up all of my minutes on my cell phone.
Hi Thomas, if you email me your number directly to joe@josephgraves.com I’ll call you. That way your number is not publicly displayed and neither is my own cell phone.
It would be nice to be able to transfer my stocks to my brokerage account prior to IPO.
As you aware the IPO can either sky-rocket or plummet…
By having to wait could cost me dearly.
Thanks
Hi Rex,
It’s probably too late to transfer the shares to your brokerage account before the shares are listed, but you should be able to call the Columbia Property Trust transfer agent (or custodian if it’s in an IRA) to execute your sale (if that’s what you decide to do). Either way, I don’t expect too much volatility.
It looks like the value of this stock is down by 20%. Did the price of stock go down by 20%? Or, will there be a distribution for the difference?
Hi Raul, it looks like the price is down again. From what I’ve read there will not be a separate distribution or additional shares to make up the difference in price. I do find it odd that they chose to do the 4 for 1 split to get the price in range with other REITs only to cut the price. Why not do a 3 for 1 split?
We lost $18,000 when Columbia went public because we chose reinvestment option. Other people with nontraded Reits beware. Take your dividends as they are distributed.
.
Hi Donna, I can appreciate your frustration around Columbia, but them going public was not the cause of your loss. The economy collapsed in 2008 along with with stock market and many other asset classes (real estate included) which is the primary reason for the decline in value. In my opinion the IPO is a positive step as it will allow people the freedom to sell their shares if needed, but only time will tell what the best decision would have been (in hindsight).
My financial advisor wants to pull my shares out of Columbia property trust. I’m not sure what to do-I lost $7000 when they went on the market and it seems like the stock has been on the upswing-should I pull out now and loose money or should I stay in-in hopes of getting my money back? Thanks
Hi Carl, I’d start by asking your advisor why they want to sell it now and why they didn’t have you participate in the share buy back, where you could have received as much as $25 per share. I’d also be interested in hearing their response, in addition to learning how they’d charge you for such a transaction. That said, how much you’ve gained or lost is a psychological variable to consider, but each investment should be evaluated on it’s own merits as well as how it relates to your goals, strategy, and other portfolio holdings.
My advisor wants to transfer from columbia to a Pershing IRA. I guess I just don’t understand myself why now? Why didn’t he do it before this-and, that’s what scares me. I am suppose to talk to him after the holidays and will ask him why and, will let you know what he says. I just don’t want to do the wrong thing-I’m scared of taking it out of Columbia and, then, having their stock go up etc. Thanks for you comment and I will talk to you soon.