Retail Value Inc (NYSE: RVI) stock price crashed 75% during premarket trading despite the lack of significant announcements from the trust.
The real estate investment trust (REIT) last significant move was the repayment of $190 million to Site Centers in October as preferred dividends to fulfil its obligation to the firm, which has a preferred investment in the trust.
SITE Centers recently reported upbeat Q3 results as its open-air shopping centers in suburban regions with high-income households witnessed significant demand from sellers and registered the highest leasing volume in two years.
RVI stock price crash could indicate an impending negative earnings report from the trust,w which is expected to release its Q3 earnings report on November 3, 2021.
The last significant announcement from RVI was the disposal of its remaining Puerto Ricco assets in August this year for a sum of $550 million, with the transaction closing by the end of the quarter.
RVI was able to repay the outstanding mortgage of $214.5 million on its Puerto Ricco properties following the closing of the asset sale. In addition, the sum raised from the disposal of its Puerto Ricco assets also enabled RVI to repay SITE Centers $190 million.
Retal Value Inc shares had risen 82.65% since January this year and had a 113.52% 12-month gain before today’s premarket crash.
The trust’s share price rally had been driven by positive Q1 and Q2 earnings results and positive investor expectations.
While it is unclear why RVI shares have crashed today, I’ll keep an eye on the company for any updates regarding today’s sudden move.
*This is not investment advice.
RVI stock price.
RVI stock price crashed 75% premarket to trade at $6.78, flailing from Thursday’s closing price of $27.16.
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