Assuming shareholders get $2.65 and a 8.7 cents dividend, the market appears to be assigning a IPO success probability of 55%. Rather conservative in my opinion given 1) CEO has interest in the new property management company and 2) the new Japanese REIT has the potential to deliver an attractive dividend yield. Reits in Japan have yield of 3.5%, very low compared to our REITS.
Only flipside is that the Yen is relatively high now and there is mean reversion risk.
