United Investors Realty Goes Shopping for a Buyer

Mall operator United Investors Realty Trust has tapped First Union Securities as a financial advisor to explore strategic alternatives. The January 18 announcement, made after the market closed, caught the attention of the Street, as the company’s stock traded up nearly 13% the next day, reaching a high of $5 a share before closing at $4.75. United’s stock closed at $5.06 per share on January 31. The Houston-based REIT specializes in acquiring, developing, and operating neighborhood shopping centers in the Sunbelt region of the United States. The $40 million market cap developer owns controlling interests in nearly 30 centers. For the third quarter, the company posted a gain of $900,000 on revenue of nearly $6.5 million, compared with earnings of $1.3 million on revenue of approximately $7 million a year earlier.