Archstone-Smith Trust. Since 1970, Archstone-Smith has increased market viability, customer base, and stock prices. Market value of the Archstone-Smith Trust in 2002 was around $10 billion dollars and now it's around $19 billion dollars. This report will try to find and analyze its S.W.O.T. (Strengths, Weaknesses, Opportunities, Threat) and provide recommendations the company's future. This includes an analysis of the major competitor, Equity Residential, and a critical review of the base theories and the manner in which Archstone-Smith functions.
Archstone-Smith Trust began as a Texas REIT (Real-Estate Investment Trust) named El Paso Real-Estate Investment Trust. In 1960 Congress established REIT, which opened the window of opportunity to the small investors invests in real estate in a manner similar to mutual funds. Investors could take REIT public and be able to trade their share in the same mannerism as corporations traded stocks. The Securities and Exchange Commission (SEC) as normal stock exchanges monitored these REIT public trades.
In 1970 the company decided to change its name from El Paso Real Estate Trust to Property Trust of America. Property Trust of America started investing in a wide range of real estate with its new name. In 1980 the company's portfolio reached from shopping malls to a Holiday inn in San Francisco's Fisherman's Wharf. ...