American Financial Realty Prompts
Talk of Asset Sale, Dividend Cut

American Financial Realty Trust, a struggling real estate investment trust involving Wall Street icon Lewis Ranieri, abruptly canceled a presentation to a big industry conference Friday, prompting one analyst to speculate it is contemplating a "significant strategic event."

In a report, John Kim, an analyst with Banc of America Equity Research, said the event could include "a major asset sale, joint venture formation and/or dividend cut."

The speculation about the company started on Thursday when Mr. Ranieri expressed disappointment with the Jenkintown, Pa.-based REIT's stock price, adding the "status quo should not be tolerated." Mr. Ranieri, the company chairman, said it was considering "debt repayment, stock repurchases and other possible strategies to enhance our financial performance."

When canceling a presentation to the National Association of Real Estate Investment Trusts Conference, scheduled in New York next week, the company said it would be "premature" to speak while "the company is engaged in a continuing review of a variety of measures to enhance our financial performance, cash flow and shareholder returns."

American Financial Realty concentrates on buying bank branches and office properties across the U.S., typically leasing them back to banks and other companies. When it went public in June 2003, the offering received a lot of attention because it involved Mr. Ranieri. But the company's stock price suffered as it posted lower-than-expected earnings, questions about future growth prospects and turnover among chief financial officers.

The REIT, which had an offering price of $12.50 per share, closed Friday at $10.48, up 53 cents, in 4 p.m. composite trading on the New York Stock Exchange.

Mr. Ranieri, who was portrayed in the book "Liar's Poker," gained fame on Wall Street from his earlier days at Salomon Brothers, where he was one of the founders of mortgage-backed securities.

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