Pure Industrial Real Estate Trust: 3 Different Insiders Have Purchased Shares This Month

In this article, I will feature one real estate investment trust that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

1. The stock is purchased by three or more insiders within one month.


2. The stock is sold by no insiders in the month of intensive purchasing.


3. At least two purchasers increased their holdings by more than 10%.

Pure Industrial Real Estate Trust (OTC:PDTRF) is an independent equity real estate investment trust.

Insider buying during the last 30 days

Here is a table of Pure Industrial Real Estate Trust's insider-trading activity during the last 30 days by insider.

Name	Title	Trade Date	Shares Purchased	Current Ownership	Increase In Shares
Steve Evans	CEO	Dec 18	23,000	57,852 shares	+66.0%
Kevan Gorrie	President	Nov 20-Dec 12	90,500	129,334 shares	+233.0%
Francis Tam	CFO	Dec 17-18	69,680	135,902 shares	+105.2%

There have been 183,180 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Pure Industrial Real Estate Trust's insider-trading activity by calendar month.

Month	Insider buying / shares	Insider selling / shares
December 2013	182,680	0
November 2013	500	0
October 2013	0	0
September 2013	45,000	0
August 2013	6,100	0
July 2013	0	0
June 2013	19,300	0
May 2013	3,000	0
April 2013	0	0
March 2013	14,000	5,000
February 2013	0	0
January 2013	0	0

There have been 270,580 shares purchased and there have been 5,000 shares sold by insiders this year. The month of December has seen the most insider buying.

Financials

Pure Industrial Real Estate Trust reported the third-quarter financial results on November 14 with the following highlights:

Revenue	$32.6 million
Funds from operations	$14.9 million
Net income	$14.6 million
Cash	$9.5 million
Debt	$723.4 million

Competition

Pure Industrial Real Estate Trust's competitors include WPT Industrial Real Estate Investment Trust (OTCQX:WPTIF). Here is a table comparing these two companies.

Company	PDTRF	WPTIF
Market Cap:	561.96M	198.33M
Qtrly Rev Growth (yoy):	1.44	N/A
Revenue:	94.85M	43.14M
Net Income:	29.31M	10.10M
P/S:	5.92	4.60
P/B:	0.93	1.60

Pure Industrial Real Estate Trust is trading at a lower P/B ratio than its direct competitor.

Peer analysis

Pure Industrial Real Estate Trust has outperformed the peer group since its IPO in August 2007.

(click to enlarge)

(Source: December fact sheet)

Conclusion

There have been three different insiders buying Pure Industrial Real Estate Trust and there have not been any insiders selling Pure Industrial Real Estate Trust during the last 30 days. All three of these insiders increased their holdings by more than 10%.

(click to enlarge)

(Source: September presentation)

There are two analyst buy ratings, four neutral ratings, and zero sell ratings with an average price target of $5.37. Pure Industrial Real Estate Trust has a book value of $4.45 per share and the stock has a dividend yield of 6.8%. I believe the stock could be a good pick below the book value of $4.45 per share based on the intensive insider buying.

(click to enlarge)

(Source: December fact sheet)

Source: Pure Industrial Real Estate Trust: 3 Different Insiders Have Purchased Shares This Month

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTC:PDTRF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

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