If I were you, I think it makes sense, if the stock runs hard, and you believe there will a price drop on a reduced FFO number due to dilution from the warrants, to sell and then buy on the dip. The dip won't occur except for on a date when earnings are released (at least it is most likely they will not warn).
In reading up, I think that they will need to adjust EPS, if, and only if, it is dilutive. They have 40MM warrants (maybe 45MM, I forget) but 40MM is fine for the calculation below. I believe for the 1Q of 2012, they will take average price and if it is below $12 (likely) they won't have any FFO hit through warrant dilution. However, if it were $12.25, they would likely have to declare 40MM - 12/12.25*40MM shares, or 816,236 shares additional - with a 40MM float, 816,236 is a 2% share increase leading to a 2% decline in FFO. There are some rules on reporting that allow them to pro-rate the increase in shares based on the time remaining on the warrant, I believe, and if this is the case, they have much more time remaining such that the impact would not be 2%, but 3/35 * 2%. In any case, I don't think, that the increase in shares will be huge at anyone given time, and my guess is that the FFO projections should already include some management model for the share price. As this price is difficult to predict, there could be a shock if there expectation for ROIC share pricing that is wildly different from the market. I ramble on but I want to advise, this is based on Friday night education session trolling the web - check out this presentation
slides 63-67, so take it with a grain of salt.
I was quite happy to see the common and warrants move up today - I think there is more in store.
I have an opinion, but it is just that. At some point with the stock above 12 the company will be forced to report earnings and FFO on a fully diluted basis including the shares from a warrant conversion(unfortunately none of the anlaysts asked what would trigger that, I assume because it is defined by accounting standards I do not know). When that happens, it will make earnings and FFO tank. To the unitiated, that will look bad and create a buying opportunity for knowledgable investors. I plan to hold through that event, buy more on the dip, and then expect them to annouce a resoltiuon of the warrant problem that will allow the stock to recover (with hopefully more cash in the tank for acquisitions). JMHO
Read Tanz's profile, it gives numbers such as his success at growing market cap with Pan Pacific. Something like 26% a year from 1997-2006.