ProLogis Secondary?
Mr. Volatility recently alerted me about ProLogis’ recent SEC Registration No. 333-157818 for a secondary.
ProLogis registered to sell 1,234,552 shares for some very special shareholders. ProLogis will receive NONE of the proceeds. Interesting, huh? Here is screengrab of the first page of the document:
CLICK TO ENLARGE
Click HERE to read the entire document. Who are the poor saps that will get stuck with this crud? What will the brokers tell them?
On another note, anybody notice how ProLogis always gets its logo up when it’s mentioned on the CNBC “Winner’s and Losers” segment? Isn’t that a great way to advertise your stock? Genius!
March 12th, 2009 at 9:31 am
you really don’t understand how REITs work at all, do you? it is almost comical at this point. but you do get me to read your site from time to time, so you have me beat there.
before most RE funds were open ended, and when REITS first started, it was known as an UPREIT structure. people would give properties or cash to PLD in exchange for units. these units were typically convertible to PLD common stock on a 1:1 basis.
these people are investors in some of PLD’s funds, and they are converting their units to common stock. of course PLD doesn’t get any proceeds from this transaction! they already received the benefit when the units were given previously!
the question you should be asking is why these investors want to convert their units to common stock? do they want to get out and thus are looking for a liquid method to do that? or do they see more value in the CS than the funds they are in? or something else?
March 12th, 2009 at 11:13 am
Scott-
I understand the transaction. I am simply asking the questions that you pose:
“…why these investors want to convert their units to common stock? do they want to get out and thus are looking for a liquid method to do that? or do they see more value in the CS than the funds they are in? or something else?”
If you think I don’t understand REITs you stop reading me and go and buy PLD, ACC and whatever REIT you think you understand better. I challenge you to take the other side of my trade.
Six months from now, look at your account balance, revisit my site and remember that I told you so.
March 24th, 2009 at 2:25 pm
Richard, you didn’t understand the transaction at all. Look at your original post for crying out loud…Scott made you look like a fool! Pathetic!