Real estate owner and developer Archstone Inc. has announced its intent to go public, selling $3.45 billion in shares on the NYSE under the symbol ASN. It is a notable difference from the amount of equity offered in its first such filing in August, when it proposed a $100 million IPO. The company did not say how many shares it planned on selling or how those shares would be priced.
The company will seek status as a real estate investment trust, or REIT, which allows the business to avoid paying any entity-level federal taxes. The REIT status would require the firm to distribute at least 90% of its taxable income to shareholders. According to the most recent SEC filing, Archstone properties are primarily located in large coastal markets including D.C., New York City, Boston, San Francisco, and Southern California. These high-demand markets allow Archstone to keep high occupancy rates (94.2%), and charge an average of more than $2,100 in monthly rent per unit.
What remains of the once-mighty financial institution Lehman Brothers owns "a significant amount" of outstanding stock in Archstone.