Shares of United Development Funding IV (UDF) are now trading on the NASDAQ Global Select Market. The real estate investment trust began trading on Wednesday at $21.04 a share. It closed Thursday at $19.60.
Formed in 2006 as a nontraded REIT, it has approximately $614.7 million in equity.
In conjunction with listing its shares, the Maryland-based REIT announced a tender offer in which it will purchase up to $35 million of common shares from its shareholders. It will pay a purchase price of $20.50 per share to the seller in cash.
UDF IV, which specializes in single-family residential finance, plans to fund the offer with cash and funds available under existing credit facilities. The tender offer will expire on July 2 unless it is extended or withdrawn.
Hollis M. Greenlaw, chief executive and chairman of the UDF IV Board of Trustees, said in a prepared statement: “The housing market continues to strengthen, and capital for residential development continues to be a challenge. We are still in the early stages of a housing recovery, and UDF IV will continue to be an important capital solution for regional homebuilders and developers.”