InvenTrust Properties recently announced a spot secondary offering of 8 million shares priced at $28 per share. This move aims to raise capital for the company and potentially attract more investors to the real estate investment trust (REIT).
It is essential to note that the TipRanks Smart Score performance mentioned in the article is based on backtested results. Backtested performance should not be considered as an indicator of future actual results. The results are based on the performance of a strategy that was not historically offered to investors, and they do not represent returns that any investor actually achieved.
Backtested results are calculated by applying a model retroactively using historical data and certain assumptions that are integral to the model. These assumptions may or may not be testable and are subject to losses. It is crucial to understand that changes in these assumptions can significantly impact the backtested returns presented.
The article also highlights that certain assumptions have been made for modeling purposes and may not be realized in practice. It is essential to recognize that backtested performance is developed with the benefit of hindsight and has inherent limitations. The results do not reflect actual trading or the influence of economic and market factors on the decision-making process.
Since trades have not been executed in reality, the results may have over- or under-compensated for the impact of certain market factors, such as lack of liquidity. Additionally, backtesting allows for adjustments to the security selection methodology until past returns are maximized, which may not accurately reflect actual performance.
Furthermore, backtested results are adjusted to account for the reinvestment of dividends and other income. It is important to note that these results are presented gross-of fees and do not include the impact of transaction costs, management fees, performance fees, or expenses, if applicable. Regulatory considerations regarding the presentation of fees must also be taken into account.
Overall, the spot secondary offering by InvenTrust Properties presents an opportunity for the company to raise capital and potentially attract more investors. However, it is crucial for investors to exercise caution and conduct thorough research before making any investment decisions based on backtested performance or historical data. Investing always carries inherent risks, and it is essential to consider all factors before committing capital to any investment opportunity.