Monday, December 28, 2009

New S-11's for Excel Trust and Invesco Mortgage Capital

Taking a look at the hot sheets (aka SEC EDGAR online) reveals that S-11's for two REITs have been filed this week.
  1. Excel Trust (EXL)
  2. Invesco Mortgage Capital (IVR)

Excel Trust (EXL)

Excel Trust is a new REIT, started by former New Plan Excel (NXP) folks, who are looking to buy retail assets. This S-11 gets an immediate de-merit for burying "Management History and Experience" all the way on page 94. Compare to how Pebblebrook Hotel Trust (PEB) made it very clear who was running the show and why you should invest with that management team. This isn't to say that there are any flaws

Folks who are real REIT old timers will remember Gary Sabin, as being involved in the merger of Excel Realty and New Plan Realty Trust to create the massive New Plan Excel Realty Trust back in 1998. New Plan Excel was eventually sold in 2007 to Centro Properties Group of Australia at very close to the top of the market. See also (Some burnt by hot commercial property December 24, 2009).

Unlike some other REITs which are completely blind pools, Excel Trust 2.0 plans to start with an initial book of properties contributed by the founders in exchange for shares of the new venture. That should allow for a fairly quick initiation of dividends after the IPO.

Invesco Mortgage Capital (IVR)

Invesco Mortgage Capital (IVR) has filed for a secondary offering to double the size of the company.  Invesco put out a heroic struggle in June 2009, to get the first post-bubble REIT public offering sold and distributed. These days IVR has some street credibility (due to $1.66 in post IPO dividends) and the stock is trading above book value. That is always important for MREITs and BDC's, because their real growth story is doing lots of accretive capital raises. 

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