REITs Modify Share Repurchase Programs

Mortgage & Real Estate

A pair of nonlisted real estate investment trusts with the same dealer/manager have modified their share repurchase programs to increase stockholder liquidity.

American Realty Capital Trust III and American Realty Healthcare Trust both adopted a rule providing that repurchase requests in connection with the death or disability of a stockholder will always be honored so long as ARCT III or ARC Healthcare remain as nontraded REITs.

Any future changes to the share repurchase program for either company would require a majority stockholder vote.

ARCT III and ARC Healthcare both said they would continue to limit the purchases that either may make pursuant to its share repurchase program in any calendar year to 5% of the weighted average number of shares outstanding (per company) on Dec. 31 of the prior year.


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