Financial Flexibility and Investment: Evidence from REIT At‐The‐Market (ATM) Equity Offerings

34 Pages Posted: 5 Jun 2018

See all articles by Shawn D. Howton

Shawn D. Howton

Villanova University - Department of Finance

Shelly Howton

Villanova University - School of Business

Benjamin Scheick

Villanova University - Department of Finance

Date Written: Summer 2018

Abstract

This article examines changes in real estate investment around the establishment of at‐the‐market (ATM) equity programs by equity REITs. We document a significant increase in the rate of investment following an ATM program announcement and its subsequent use. However, we find that ATM access has a differential impact on the investment activity of REITs facing more significant financial constraints. We also provide further evidence that REITs with ATM programs generate positive long‐run returns in excess of that of similarly timed SEOs.

Suggested Citation

Howton, Shawn D. and Howton, Shelly W. and Scheick, Benjamin, Financial Flexibility and Investment: Evidence from REIT At‐The‐Market (ATM) Equity Offerings (Summer 2018). Real Estate Economics, Vol. 46, Issue 2, pp. 334-367, 2018, Available at SSRN: https://ssrn.com/abstract=3189532 or http://dx.doi.org/10.1111/1540-6229.12211

Shawn D. Howton (Contact Author)

Villanova University - Department of Finance ( email )

800 Lancaster Avenue
Villanova, PA 19085-1678
United States

Shelly W. Howton

Villanova University - School of Business ( email )

Dept. of Finance
Villanova, PA 19085
United States
610-519-6111 (Phone)
610-519-6881 (Fax)

Benjamin Scheick

Villanova University - Department of Finance ( email )

United States

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