The REIT believes its stock price is undervalued
SL Green expanded its share buyback program to $1.5 billion in December. This means that the REIT believes its stock price is undervalued relative to its assets and plans on buying its own shares from the marketplace.
Why others don’t: Since REITs are required to spend 90 percent of their income on dividends, those who repurchase shares, have less to spend on acquisitions and renovations.
Quotable: CEO Marc Holliday told the WSJ who reported the news: “We’re in a quirky period where REITs are trading at big discounts… Buying back your stock is the ultimate expression of your confidence in how cheap your stock is.”