JER Investors Trust tries to avoid delisting

The real estate investment trust arm of JE Robert Companies has undertaken a 1-for 10 reverse stock split after its average share price dipped below $1 in violation of the New York Stock Exchange’s listing requirements.

JER Investors Trust, a REIT managed by real estate firm JE Robert Companies, has effected a 1-for-10 reverse stock split in order to address non-compliance with the New York Stock Exchange’s continued listing standard.

A reverse stock split reduces the number of shares and increases the share price proportionately.

The McLean, Virginia-based real estate investment firm, led by chief operating officer Michael Pralle, received official notice this week that it was no longer in compliance of NYSE listing rules after its average closing price fell below $1 for more than 30 days. JER told the NYSE it planned to boost its stock price by undertaking the reverse stock split, which became active on 20 February.

JER Investors Trust share price was $2.68 at the close of business on 23 February. The REIT has six months to boost its average share price before being subject to suspension and subsequent delisting.

JE Robert Companies is divided into its private equity real estate arm, JER Partners, and the REIT, JER Investors Trust. JER Investors Trust recently invested alongside the private equity real estate unit to form a debt fund, the US Debt Co-Investment Vehicle.