Wells Sweetens Pot for Stockholders

ATLANTA-Wells Real Estate Investment Trust II, selling $10 and $9.95 shares at a steady pace, is sending shareholders good news these days. Directors at the locally based, privately held company are raising the dividend rate from an amount equal to a 2.5% annualized return on a $10 investment per share to a 5% annualized rate. The new rate will be calculated on a daily basis to holders of record from April 1 through June 15. The dividend will be paid in June, along with the dividends earned March 16 through March 31.The new rate “provides our investors with a competitive income stream,” says Leo F. Wells III, president and founder of Wells Real Estate Funds. “With our latest acquisitions in Houston, Atlanta and Detroit, we are gaining momentum and intend to continue acquiring high-quality properties and securing long-term leases with creditworthy tenants.”Launched Dec. 2, 2003, Wells REIT II’s initial public offering of 600 million shares is selling common stock at $10 per share, with discounts available for certain categories of investors. The REIT also is offering up to 185 million shares at $9.95 per share under its dividend reinvestment plan. The stock is not publicly traded.Wells’ first REIT offering in 1998 raised $4 billion in equity from 117,000 investors, Wells says. The firm manages $5 billion in investments for 150,000 investors nationwide. Its investment products include Wells REIT I and II, the Wells S&P REIT Index Fund and the Wells limited partnerships.In 2003, the company acquired $2.6 billion worth of properties, eclipsing its projected acquisition goal of $2.5 billion in valued assets.