Columbia Property Trust Inc (NYSE:CXP) Continues To Consolidate Post Its $234 Million Buy Back


Dallas, Texas 12/30/2013 (FINANCIALSTRENDS) – Columbia Property Trust Inc (NYSE:CXP) is a $3.3 billion market capped firm which operates as a real estate investment trust. Since the REIT started its public trading at the markets since October, the stock was exposed to tribulations. But in the past 30 days it has posted impressive gains of 9.49 percent. In the past one week, these gains have petered down to a more realistic 2.86 percent.

This real estate investment firm has posted net sales of $594 million in the trailing 12 months and has generated net income of $2.3 million in the same period. It has also paid out dividend of $1.2 per share in the same period. This translates to a 4.84 percent dividend yield in the same period.

This consolidation in the valuation of Columbia Property Trust Inc (NYSE:CXP) stock has been accomplished on the back of re drawing of its debt and investment portfolio. In mid November, the firm had announced that it will buy back 9.4 million shares of its common stock by shelling out close to $234 million by bringing out a Dutch auction tender offer.

Readers should note that under such a “Dutch auction” the shareholders have the option of deciding the quantum and the price at which they would like to trader in their shares. The only caveat in this offering is that the price range at which company is willing to buy back shares has been announced in advance. Based on the interest levels envisioned by the share holders, Columbia Property Trust Inc (NYSE:CXP) will pick “lowest per-share price within the range that lets it buy the amount of shares that it wants”. Under this arrangement, Columbia Property Trust Inc (NYSE:CXP) had fixed his payout at $25 per share.

When trading ended for the day on December 29, the stock was trading at $24.81 per share which represents a 6 percent dip from its 52 week high price point.