In order to pay off its outstanding debts, the specialty real
estate investment trust (REIT),
) priced the underwritten public offering of 3.6 million common
shares. The offering is anticipated to close by Oct 23, subject
to customary closing conditions.
In particular, EPR Properties expects to garner around $176.8
million in gross proceeds (before deducting underwriting
discounts and estimated offering expenses) from the offering. The
company plans to utilize the proceeds for paying off outstanding
debt under its unsecured revolving credit facility, which was
roughly $160.0 million as of Oct 16. The remaining net proceeds
will be used for meeting other corporate needs.
KeyBanc Capital Markets - a subsidiary of
) - and
) helped EPR Properties in the offering, acting as the
underwriters. Although this public offering will result in share
dilution for the company, the payment of debt is encouraging as
it will reduce interest expenses.
Also, strategic investments will help EPR Properties enhance
its portfolio quality. In relation to this, in the current month,
the company acquired a Tannersville, Penn.-based asset -
Camelback Mountain Resort - for about $70 million. The accretive
buyout of the resort, which attracts around 900,000 visitors
annually, bodes well for EPR Properties' earnings going
Significantly, EPR Properties has interests in assets in
select market segments, with Entertainment, Recreation and
Education being the primary segments. Its investment in these
segments totals over $3.2 billion.
EPR Properties is scheduled to release its third-quarter 2013
results on Nov 5, 2013, after the closing bell. The Zacks
Consensus Estimate for the third-quarter 2013 funds from
operations (FFO) is currently pegged at 98 cents, reflecting a
year-over-year increase of 4.68%.
However, EPR Properties currently carries a Zacks Rank #4
(Sell). A REIT that is performing better than EPR Properties is
General Growth Properties, Inc
), carrying a Zacks Rank #2 (Buy).
FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.
CITIGROUP INC (C): Free Stock Analysis Report
EPR PROPERTIES (EPR): Free Stock Analysis
GENL GRWTH PPTY (GGP): Free Stock Analysis
KEYCORP NEW (KEY): Free Stock Analysis Report
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