Several listed property companies have recently announced share buyback programmes to boost their stock price and prop up their Net Asset Value per share in response to plunging share prices and stock market volatility.
Several listed property companies have recently announced share buyback programmes to boost their stock price and prop up their Net Asset Value per share in response to plunging share prices and stock market volatility.
In December CEE shopping centre developer and investor Atrium said it intends to propose a resolution to shareholders to authorise the buyback of up to 50 million company shares. Atrium, formerly known as Meinl European Land, said the purchases, which will be made on the open market, are expected to enhance the value of the company’s shares, which have lost almost 85% of their value in the year to date.
The company joins a list of major property groups including Unibail-Rodamco, Beni Stabili, Dic Asset, Vastned O/I and Hochtief which have all recently announced plans to repurchase shares. Franco-Dutch property giant Unibail Rodamco spent some €40 mln in November to purchase shares as part of a buyback programme.
In February, Beni Stabili launched a plan to buy up to 191 million shares, or 10% of its capital, and has made large purchases since. Rotterdam-based listed VastNed Offices/Industrial also said in December it has decided to use part of its available credit facilities to buy back up to two million company shares, or about 9.6% of the company’s share capital. The firm is launching the buyback programme to book favourable returns on its shares which have lost about 41% of their value over the last month - and 78% since the end of 2007.
Other companies that have recently unveiled buyback plans include Plaza Centers, Citycon, Colonia Real Estate, Ablon, Conwert, Sjaelso Gruppen and PSP Swiss Property. Explaining the move, the Swiss property company, which plans to buy up to 5% of its share capital, said the international finance and capital markets have not recovered yet and shares will be bought for cancellation only if the price ‘falls off sharply’ compared to NAV. Dolphin Capital Investors, the Southeastern European coastal land investor and residential resort developer, boosted its NAV by 8% to 264p per share during the third quarter after buying back over 10% of its share capital, or 54 million shares.
This story appears in the December edition of PropertyEU Magazine. Click on the link below to subscribe.
