DCT Industrial Trust Inc
), a real estate investment trust (REIT), disclosed the
completion of a public offering of its common shares to enhance
its liquidity. In particular, the company sold 23.0 million
common shares in the offering, wherein the underwriters fully
exercised their option of purchasing additional shares.
After considering underwriting discounts and commissions as well
as estimated offering costs, the net proceeds from the sale of
common shares came in at around $158.2 million. The net proceeds
will be primarily utilized to fund future acquisitions,
development activities or paying back amounts outstanding under
its senior unsecured revolving credit facility. Additionally, the
proceeds would be used for meeting general corporate needs or for
a combination of the above mentioned activities.
The joint book-running managers for the offering are BofA Merrill
Lynch, a unit of
Bank of America Corporation
JPMorgan Chase & Co
) and Jefferies.
Though the sale of shares leads to share dilution, the repayment
of debt is expected to lessen DCT Industrial's interest expenses
and hence encouraging.
In Sep 2012, DCT Industrial generated net proceeds of about
$112.2 million by selling approximately 19.0 million common
Highwoods Properties, Inc is another REIT that recently closed a
public offering of common shares. The company generated about
$150.9 million as net proceeds by selling 4.3 million common
shares, including nearly 0.6 million shares that were sold for
the full utilization of the underwriters' option to acquire
additional common stock.
DCT Industrial currently carries a Zacks Rank #4 (Sell).
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