. . . . . . .Warren Buffet is buying REITs! . . . . .
JDN up 15% yesterday on word of his investment of 1.7 million shares.
From the Nashville Post:
JDN Realty Corp. , (JDN) the scandal-plagued real estate investment trust founded by Donnie Nichols of Nashville, has gotten a major vote of confidence with the disclosure that Warren Buffett has acquired 5.1% of its common stock.
Shares in the Atlanta-based shopping center developer were up $1.63, or 15%, to $12.25 in afternoon trading of 550,000, more than twice the daily average.
Mr. Buffett, who manages Berkshire Hathaway Inc. (BRKa), is widely regarded as the most successful investor in U.S. stocks. A value investor, he has made several other REIT investments in the past 18 months.
The filing reveals that he acquired 1.7 million shares of JDN, which specializes in developing and owning shopping malls anchored by Walmart stores.
JDN shares fell sharply in February after the company revealed that two officers had received $4.9 million of unreported compensation, leading to the restatement of financial results for the years 1994-1999. Mr. Nichols resigned his post as chief executive and was replaced with co-CEOs -- his wife Elizabeth Nichols and the company's chief financial officer.
Mr. Nichols was to remain "non-executive" chairman.
In March, the company said that its banks had agreed to continue its line of credit until mid-April.
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biz.yahoo.com [Reuters] |
