DCT Industrial a Buyout Target?
The Wall Street Journal's Deal Journal Blog - which is cool and informative - quotes from a Bank of America research report on REITs that are attractive buyout targets. The report analyzed eighty possible REITs and lists DCT Industrial as one of the top five companies that would offer private equity firms the fattest returns. DCT went public late last year and has traded near $12 since its listing. It was originally sold to investors at $10 per share in 2002 through 2005 (I think). I am guessing that the analyst picked up on DCT's low debt level and how private equity firms could increase the leverage if it was private. I am not seeing how this would be bad for investors (or for Dividend Capital and its new Total Realty Fund, either).