GREEN REIT (OTCMKTS:GREEF) touched a 52-week high of $1.85 after it said it had been included in FTSE global real estate index. The news is positive for the company and opens the way for a potential wave of a new investment.
The index is a subset of the eighty-seven member ‘FTSE EPRA’ and is formulated to highlight trends in real estate shares across the globe. Stephen Vernon, the Chairman of Green REIT, said that the company is delighted with the news. It is a relative newcomer firm on the stock exchange. The addition of Green Reit will be effective from March 23, 2015.
The positive development
Ray Crowley, an analyst at Davy Stockbrokers, said that it is a positive development for the company and reflects Green REIT’s transition from cash box that it was at the time of its IPO in 2013 to a better performing and stabilized Real estate operating firm. Other stockbroker, Goodbody, also welcomed listing news, stating investors previously moved out of the stock as it wasn’t in the index.
Eamonn Hughes of Goodbody said that the addition opens the potential base to a wider audience for the company. When the REITs were introduced in the market, they were just seen as cash boxes. Investors refrained from pouring money in REITs at that time. Some people invested only after a company attracted huge investment. However, now trend seems to be changing as investors put their money in such companies.
With the latest news, Green REIT is probably now 80% invested. There is a reasonable group of investors who buy REITs in Europe or globally, while there are some who don’t buy them if they are not in the index. Green REIT’s market capitalization stands around €1.05bn. Almost more than €12bn of funds follows the ‘European EPRA index.’