Highlands REIT’s Common Stock Generating Interest in Auction Market
March 5, 2019 | James Sprow | Blue Vault
In terms of economic value, the recent auction history for the common shares of the nontraded Highlands REIT, a diversified self-managed portfolio that was spun off from InvenTrust, is not very significant. The history of this REIT’s transactions on the third-party auction site Central Trade & Transfer since the end of January shows 138,662 shares sold for a grand total of $25,995. What’s interesting is the uptick in auction pricing. For years, the common shares were selling at auction for less than $0.18 per share. Recently, however, the closing prices on these auctions have jumped, averaging $0.21 per share over the last five auctions, as of March 5, 2019.
Highlands REIT’s most recent estimated NAV per share was $0.33, announced in January 2019.
The REIT has not announced any major changes recently to give a hint at why the auction pricing may be trending upward, but a price move from $0.16 on January 28 to $0.22 per share on March 4 is significant, even if this penny stock is not.
I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture. For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments. Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients. I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.