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Video: What is a Stock Split?
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Spirit Realty Capital is a self-administered and self-managed real estate investment trust with in-house capabilities, including acquisition, credit research, asset management, portfolio management, real estate research, legal, finance and accounting functions. Co. primarily invests in single-tenant, operationally essential real estate assets throughout the U.S., which are subsequently leased on a long-term, triple-net basis to tenants with operations in retail, industrial and certain other industries. Co.'s operations are carried out through its operating partnership, Spirit Realty, L.P. According to our SRC split history records, Spirit Realty Capital has had 3 splits. | |
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Spirit Realty Capital (SRC) has 3 splits in our SRC split history database. The first split for SRC took place on July 18, 2013. This was a 19048 for 10000 split, meaning for each 10000 shares of SRC owned pre-split, the shareholder now owned 19048 shares. For example, a 1000 share position pre-split, became a 1904.8 share position following the split. SRC's second split took place on June 01, 2018. This was a 1115 for 1000 split, meaning for each 1000 shares of SRC owned pre-split, the shareholder now owned 1115 shares. For example, a 1904.8 share position pre-split, became a 2123.852 share position following the split. SRC's third split took place on December 13, 2018. This was a 1 for 5 reverse split, meaning for each 5 shares of SRC owned pre-split, the shareholder now owned 1 share. For example, a 2123.852 share position pre-split, became a 424.7704 share position following the split.
When a company such as Spirit Realty Capital splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as Spirit Realty Capital conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the SRC split history from start to finish, an original position size of 1000 shares would have turned into 424.7704 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Spirit Realty Capital shares, starting with a $10,000 purchase of SRC, presented on a split-history-adjusted basis factoring in the complete SRC split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/28/2014 |
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End date: |
01/22/2024 |
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Start price/share: |
$48.15 |
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End price/share: |
$42.31 |
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Starting shares: |
207.68 |
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Ending shares: |
398.39 |
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Dividends reinvested/share: |
$27.46 |
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Total return: |
68.56% |
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Average Annual Total Return: |
5.51% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$16,863.10 |
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Years: |
9.74 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/28/2014 |
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End date: |
01/22/2024 |
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Start price/share: |
$48.15 |
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End price/share: |
$42.31 |
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Dividends collected/share: |
$27.46 |
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Total return: |
44.91% |
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Average Annual Total Return: |
3.88% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$14,489.78 |
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Years: |
9.74 |
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Date |
Ratio |
07/18/2013 | 19048 for 10000 | 06/01/2018 | 1115 for 1000 | 12/13/2018 | 1 for 5 |
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