The stock has been trading on the OTC since March 12. Roughly three months later, the company has brought its market capitalization back to the $15-million threshold. It renegotiated and extended the term loan facility earlier this month. Also, since it has been trading on the OTC, its share price has increased by 185%, according to the company's calculations. In a prepared statement, CEO and chairman Thomas Hewitt noted NYSE's consideration of the unprecedented market conditions.
SVP Carrie McIntyre tells GlobeSt.com, one of the considerations by the NYSE was the stock's gain in recent months. The plunge was likely due to the unprecedented economic conditions, which the NYSE took into account, she says.
Interstate is hardly alone among real estate firms: several have been de-listed in this downturn, others have been notified of the possibility by the NYSE. DC's JER Investors Trust is an example of the former, as is Hartford, CT-based CBRE Realty Finance.
In March, Holliday Fenoglio Fowler L.P. was notified by NYSE that it was not in compliance with listing standards, in this case maintaining stockholders' equity of at least $75 million. HFF sought approval from the Securities and Exchange Commission to lower its threshold to $50 million; in June it received permission and remains on the NYSE for now. The change is effective through October 1.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
