DCT Industrial Trust Inc.
), a real estate investment trust (REIT), has recently announced
its decision to offer 16.5 million shares to enhance its liquidity.
The company has also decided to grant the underwriters a 30-day
option to purchase up to an additional 2.5 million shares to cover
the over-allotment options.
DCT Industrial intends to use the net proceeds from the offering
to fund developments as well as future acquisitions, to repay debt
under its secured corporate revolving credit facility, and for
general working capital purposes.
BofA Merrill Lynch, the investment banking and wealth management
Bank of America Corporation
), J.P. Morgan, part of
J.P Morgan Chase & Co.
) Wells Fargo Securities, part of
Wells Fargo & Company
) are acting as joint book running managers for the offering.
At the end of second quarter 2012, DCT Industrial had cash and
cash equivalents of $3.4 million. The available balance on
company's line of credit stood at $105.0 million at the end of the
DCT Industrial owns, operates and develops high-quality bulk
distribution and light industrial properties in high-volume
distribution markets in the U.S. and Mexico.
As of June 30, 2012, the company owned interests in, managed or
had under development approximately 76.0 million square feet of
properties, which have been leased to more than 900 customers.
These included 17.0 million square feet of properties managed on
behalf of five institutional management partners.
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DCT Industrial currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We also have a long-term Neutral
recommendation on the stock.