CommonWealth REIT owns office buildings throughout the U.S., yet employs no one. Cole Credit Property Trust III Inc., which leases about a thousand stores around the country to retailers such as CVS, Lowe’s and Wal- Mart, also had no workers until a recent acquisition.
Joy Global Inc., the world’s second-largest maker of mining equipment, refuted allegations made about its International Mining Machinery Holdings Ltd. unit and said it has a “high level of comfort” in the reported results of the business it bought in China last year.
CommonWealth REIT’s clash with shareholders over a stock sale is putting a spotlight on the company that manages it and four other real estate investment trusts after investors complained the structure erodes value.
Neuberger Berman Group, an investment unit of Lehman Brothers Holdings Inc. until that firm succumbed to the U.S. subprime crisis, produced the best real- estate returns of the past five years by betting on less- indebted companies that could survive tough times.
For many hedge funds, financial rules and state intervention in markets are anathema. Emanuel J. Friedman, former co-chairman of investment bank Friedman, Billings, Ramsey Group Inc., sees them as an opportunity.
Bill Ackman’s Pershing Square Capital Management LP, the second-largest investor in General Growth Properties Inc., urged the mall owner to enter negotiations for a takeover by rival Simon Property Group Inc.
The nascent recovery in U.S. commercial real estate may be cut short as Europe’s debt crisis and Standard & Poor’s credit downgrade of Treasuries send borrowing costs to their highest in more than a year.
U.S. real estate investment trusts are trading at the biggest discount to the underlying value of their properties in more than two years, signaling it may be a good time for investors to buy shares in the companies.