Newhall Land Extends Stock Repurchase Plan

Newhall Land & Farming Co., Valencia, said it plans to buy back 5.5 million partnership units, worth about $135 million, to boost the price of the units.

The real estate investment trust’s latest stock repurchase plan, plus another 884,446 units authorized for repurchase under a previous plan, together represent just over 20% of the company’s outstanding units. The buyback program lasts until Dec. 31, 2000.

The trust’s shares have slumped an average of 24% since 1997 amid concern about rising interest rates, too much new construction and lower earnings growth.

Newhall Land plans to fund the buyback program through the sale of up to $175 million of assets from its income portfolio. The portfolio was valued at $435 million on Dec. 31, 1998.

This year, the company has bought back 1.39 million units at an average price of $24.20. It had 31.4 million units outstanding as of Aug. 31.