JER Investors Trust, the REIT managed by real estate firm JE Roberts Companies, will permanently cease trading on the New York Stock Exchange at the end of the month after failing to maintain an equity market capitalisation of more than $15 million in accordance with listing standards.
The MacLean, Virgina-based REIT last month avoided delisting after addressing a separate non-compliance issue requiring that its 30-day average closing price remain above $1 by effecting a 1-for-10 reverse stock split.
According to a statement from the firm, the REIT’s common stock will trade over-the counter (through brokers) after 31 March rather than on an exchange.
JER has also withdrawn plans for a Class A common stock offering owing to “market conditions”. Had the offering occurred, the REIT would have repurchased all outstanding trust preferred securities for $60 million.
JE Robert Companies is split 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.