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‘Asymmetrical economics’ in WPT Industrial REIT deal leave some disappointed

What were they thinking?

All we know would be that the decisions made by WPT Industrial REIT following an eight-month strategic review – which failed to look for a buyer for the entire company – have disappointed investors plus some property analysts.

How much so? The units, which traded within the US$11 range in the week prior to the decision’s release, have fallen, by about US$2 to an all-time low, closing Thursday at US$9.10. Trading volume continues to be bigger than normal and a number of analysts have either changed their rating or their target price.

Overall five from the seven analysts who cover the TSX-listed REIT – whose assets are in the U.S – rate the company a buy with the other two deeming it a hold. Before the review, WPT was rated a buy by all seven. Price targets now vary from US$11.25 to US$12.75.

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