New York-based
American Realty Capital Properties Inc. (
ARCP
)
recently announced that it has priced its underwritten public
offering of 3.25 million shares at $10.00 per share, less
underwriting discounts and commissions. The company has increased
the size of its share offering by 0.25 million.
In a bid to cover over-allotments, American Realty will provide
a 30-day option to the underwriters for purchasing an additional
487,500 shares. The transaction is expected to close on June 18,
2012.
Robert W. Baird & Co. Inc., JMP Securities LLC and Ladenburg
Thalmann & Co. Inc., a subsidiary of
Ladenburg Thalmann Financial Services Inc. (
LTS
)
acted as joint book-running managers while Maxim Group LLC and
National Securities Corporation acted as co-managers of the share
offering.
The company intends to utilize the proceeds generated from the
transaction to repay outstanding debts and for other general
corporate purposes including investing in additional properties.
This public offering will enable American Realty to attain
financial flexibility and seize accretive investment opportunities
and acquisitions, which go a long way in enhancing top-line growth.
As of March 31, 2012, American Realty's cash position stood at $768
million.
American Realty is focused on its strategy of portfolio
optimization and increasing the tenant mix. Recently, the company
acquired six FedEx Freight distribution facilities and one John
Deere distribution facility at a combined purchase price of $38.3
million. The acquisitions were in line with ARCP's expectation of
increasing the total size of portfolio to around $183.8 million,
comprising 97 properties.
American Realty is a real estate investment trust (REIT) that
owns and acquires single tenant freestanding commercial properties
subject to net leases with high credit quality tenants. The company
primarily invests in office and retail properties. As of May 8,
2012, the company owned 97 properties located in 16 states across
the United States.
American Realty reported first quarter 2012 FFO (funds from
operations) per share of 16 cents, which improved substantially
from the Zacks Consensus Estimate of a loss of 19 cents. The
company increased its 2012 estimated adjusted FFO per share
guidance from the earlier range of 94 cents to 96 cents to the
range of $1.04 to $1.07.
American Realty currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We are also maintaining
our long-term Neutral recommendation on the stock. One of its
competitors,
Taubman Centers Inc. (
TCO
)
, also has a Zacks #2 Rank.
AMER REALTY CAP (ARCP): Free Stock Analysis
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(LTS): ETF Research Reports
TAUBMAN CENTERS (TCO): Free Stock Analysis
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