Non-traded REIT, United Development Funding IV (UDF IV), announced today that it intends to list its common shares of beneficial interest on the NASDAQ. The decision was made by the board of trustees and they expect the listing to occur in 2014, subject to certain conditions and approval by the NASDAQ.
Sponsored by United Development Funding, UDF IV invests primarily in secured loans for the acquisition and development of land into single-family home lots, and the construction and model of new single-family homes. UDF IV also intends to purchase or finance securitized real estate loan pools and discounted cash flows secured by assessments levied on real property. Additionally, the trust plans to make strategic equity investments in residential real estate in select markets.
Of the company’s intent to list, Stacey Dwyer, Chief Operating Officer, commented, “Listing our shares on the NASDAQ will provide investment liquidity for our current shareholders, while making our shares available to additional investors and providing the Trust with a broader range of potential capital sources. UDF IV has a track record of strong earnings performance and consistent distributions to shareholders, and we believe that our stock will provide a desirable investment alternative to investors who want to participate in the improving housing market while earning an attractive dividend.”
UDF IV has been closed to new investors since May 13, 2013.
As of December 31, 2013 the company’s total assets were $570.9 million and it had issued 32,115,232 common shares of beneficial interest in exchange for gross proceeds, including DRIP and Secondary DRIP, of around $642.3 million.
The trust also originated or purchased 139 loans, all of which are secured by properties located in Texas with 67% located in Dallas.