A Presidio Property Trust Major Investment To Be Part of Russell 2000®
Presidio Property Trust (NASDAQ: SQFT) announced that Conduit Pharmaceuticals (NASDAQ: CDT), of which Presidio owns 6.3%, will be added to the Russell 2000 Index on July 1, 2024. This inclusion is part of the annual reconstitution of the Russell indexes, which ranks the largest US stocks by market capitalization as of April 30 each year. Being part of the Russell 2000 and Russell 3000 indexes will elevate Conduit's visibility among investment managers and institutional investors. The Russell US Indexes are benchmarks for $10.5 trillion in assets as of December 2023.
- Conduit Pharmaceuticals will be added to the Russell 2000 Index on July 1, 2024.
- Presidio owns 6.3% of Conduit Pharmaceuticals.
- The Russell 2000 Index inclusion will increase Conduit's visibility among investors.
- Russell US Indexes are benchmarks for $10.5 trillion in assets as of December 2023.
- None.
Insights
Conduit Pharmaceuticals' inclusion in the Russell 2000 Index is noteworthy for several reasons. Firstly, this inclusion can significantly improve the liquidity of Conduit’s stock due to increased visibility among investors. Being part of such a recognized index often attracts institutional investors and funds that track these indexes, potentially driving up the stock price.
The Russell 2000 Index is a benchmark for small-cap stocks and inclusion signals that Conduit has reached a certain level of market capitalization and stability. This can be seen as a positive indicator for retail investors, suggesting a form of vetting or approval by a prestigious index provider. Additionally, approximately
However, this news should be tempered with the understanding that index inclusion alone does not guarantee long-term performance improvements. It's still important for investors to perform due diligence on Conduit’s business model, financial health and growth prospects. An increase in stock price driven by index inclusion could be transient if the company does not continue to show strong fundamentals.
From a market perspective, being added to the Russell 2000 Index can substantially enhance Conduit Pharmaceuticals' market position. It not only boosts the stock's visibility but also increases its credibility among investors. This is particularly important for companies like Conduit Pharmaceuticals, which operates in a highly competitive and regulated industry.
Furthermore, the annual Russell reconstitution is a major event in the financial calendar, often leading to stock price volatility. For Conduit, this could mean short-term positive price momentum as funds that track the Russell 2000 acquire shares to rebalance their portfolios. However, retail investors should be aware of potential volatility that might ensue as this momentum can also reverse if institutional investors adjust their holdings post-reconstitution.
Moreover, the emphasis on market capitalization and style attributes by FTSE Russell underscores the importance of underlying financial health and performance. It's a signal that Conduit meets certain financial thresholds, which can be reassuring for potential investors. But, it’s also important to keep in mind that the biotech sector can be quite volatile and is susceptible to regulatory and clinical trial outcomes, which could impact stock performance independently of index inclusion.
SAN DIEGO, May 29, 2024 (GLOBE NEWSWIRE) -- Presidio Property Trust, Inc. (NASDAQ: SQFT; SQFTP; SQFTW) (“Presidio” or the “Company”), an internally managed, diversified real estate investment trust (“REIT”), has announced that Conduit Pharmaceuticals Inc. (NASDAQ: CDT, CDTTW) (“Conduit”), of which the Company owns approximately
The annual Russell US Indexes reconstitution captures the largest US stocks as of Tuesday, April 30th, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000 Index or small-cap Russell 2000 Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.
“We are excited the additional visibility that being in the Russell 2000 and Russell 3000 will give Conduit,” said Jack Heilbron, President and Chief Executive Officer of Presidio.
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to the data as of the end of December 2023, about
About Presidio Property Trust
Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio’s model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio owns approximately
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. Forward-looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Forward-looking statements regarding the Company include, but are not limited to, statements regarding the Russell 3000® Index reconstitution, including the anticipated timing of Conduit’s inclusion in the Russell 3000® Index and the potential benefits of such inclusion. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. Except as required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes please refer to the Company’s filings with the SEC, including those under “Risk Factors” therein, copies of which are available on the SEC’s website, www.sec.gov.
Investor Relations Contact:
Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: (760) 471-8536 x1244
FAQ
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