Two Non-Listed REITs managed by Dallas-based Behringer Harvard have reported that they will join the growing list of such companies that have halted share repurchases. These REITs include Behringer Harvard REIT I and Behringer Harvard Opportunity REIT I. Both REITs will accept redemption requests for death, disability or need for long-term care but will reject all other such redemption requests “until further notice”. In addition, the REITs have reported that they will declare dividends in arrears on a going-forward basis rather than in advance. This new dividend policy is designed to enable the board to make dividend decisions with “greater visibility”. Both REITs reported that requests for share redemptions during the first quarter alone exceeded the full year’s budgeted amount for redemptions, and that accepting redemptions of this magnitude could affect the REITs’ ability to fulfill other funding obligations.
Here are links to the S.E.C. filings reporting these changes:
Behringer Harvard REIT I
http://www.sec.gov/Archives/edgar/data/1176373/000110465909021391/a09-8971_1ex99d1.htm
Behringer Harvard Opportunity REIT I
http://www.sec.gov/Archives/edgar/data/1308711/000110465909021817/a09-9093_1ex99d1.htm