First Industrial Realty Trust, Inc.
), a real estate investment trust (REIT), recently announced the
closing of a secured financing transaction worth $100.6 million
with an unnamed life insurance company. The 10-year loan bears a
fixed interest rate of 4.03% over a 30-year amortization schedule.
DUKE REALTY CP (DRE): Free Stock Analysis
FIRST INDL RLTY (FR): Free Stock Analysis
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The financing is secured by a portfolio of 31 properties totalling
3.8 million square feet. The properties are spread across
California, Illinois, Indiana, Maryland, Minnesota, Missouri, Ohio,
Tennessee, Texas, and Wisconsin.
The strategic move is aimed to obtain long-term capital and reduce
its cost of capital to capitalize on future growth opportunities.
The company intends to make a prepayment of $63 million of secured
debt in the fourth quarter of 2012 and during 2013. Recently
the company also commenced an underwritten public offering of 9.4
million shares of its common stock to inrease its liquidity, which
is yet to be closed.
The company reported funds from operations (FFO) of 15 cents per
share in the second quarter of 2012 compared with 24 cents in the
First Industrial is engaged in the ownership, management,
acquisition, sale, development, and redevelopment of industrial
real estate properties. It provides supply chain solutions to a
wide array of multinational corporations and regional customers. As
of June 30, 2012 the company had approximately 70.1 million square
feet of industrial space in its portfolio.
First 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. One of its competitors,
Duke Realty Corp.
) also holds a Zacks #3 Rank.
Funds from operations, a widely used metric to gauge the
performance of REITs, is obtained after adding depreciation and
amortization and other non-cash expenses to net income