Another nonlisted REIT, this time KBS Real Estate Investment Trust, has announced that it will stop redeeming shares for the remainder of 2009, except in very limited situations such as death and disability. According to an S.E.C. filing, this move was based on the level of redemptions received already in 2009, as well as the amounts the company has budgeted from net proceeds from its dividend reinvestment plan for capital expenditures, tenant improvement costs and other funding obligations. The KBS REIT joins the growing list of nonlisted REITs that have either shut down or otherwise maxed out on share repurchases in 2009, including Inland Western Retail Real Estate Trust, Inland American Real Estate Trust, Dividend Capital Total Realty Trust and Wells Real Estate Investment Trust II. Piedmont Office Realty Trust, which suspended it share repurchase program last year, has reported that it will resume share repurchases effective April 15, but this window may not be open very long as pent-up demand from investors to have their shares repurchased may quickly deplete the amount of funds the REIT has set aside for share buy-backs.
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