UPDATE 1-Empire State Realty Trust shares rise in market debut
(Adds buysider quote, competitor's share activity, byline, updates stock activity)
NEW YORK, Oct 2 (Reuters) - Shares of Empire State Realty Trust Inc, the company that owns the Empire State Building, rose in their first day of trading on Wednesday.
Shares of the real estate investment trust (REIT) priced Tuesday evening at $13 a share, at the low end of the expected range, and opened only a hair higher at $13.05 on Wednesday. But the shares rose as high as $13.40 before easing back to $13.34, up nearly 3 percent, on the New York Stock Exchange after about an hour of trading.
"I would imagine that they would have some urgency to get this deal done because there's a lot of new deal activity in the pipeline," said Richard Imperiale, president of Uniplan Investment Counsel Inc, which has about $1 billion of assets under management.
"They likely had to price at a discount in order to get the deal done, and that then allows the shares to bounce up after opening."
The company owns 19 properties, but the landmark building is the centerpiece. The other properties, which include office buildings and retail properties, are located in New York and Connecticut.
Imperiale said his company did not own shares and has no plans to buy them because he believes New York commercial real estate prices are near, or at, peak levels.
Shares of SL Green Realty Corp, a well-established New York office REIT, were down 1.4 percent. Meanwhile, shares of the benchmark MSCI US REIT Index were down 0.7 percent.
(Reporting by Ilaina Jonas; Editing by Gerald E. McCormick and Nick Zieminski)