First Industrial Realty Trust, Inc.
) initiated a new at-the-market (ATM) equity-offering program.
The company plans to sell shares up to $13.3 million for an
aggregate offering price of at most $200 million, from time to
time, based on market conditions and capital
Notably, this new ATM program replaced the earlier one, which
was terminated on Mar 12, 2014. A consortium of renowned
financial institutions such as Baird, Wells Fargo Securities of
Wells Fargo & Company
), Mitsubishi UFJ Securities of
Mitsubishi UFJ Financial Group, Inc.
) and BofA Merrill Lynch of
Bank of America Corp.
) will support First Industrial Realty as the sales agent for the
First Industrial Realty plans to use net proceeds from the
shares sale for general corporate purposes - such as funding
proposed acquisitions and other related investments as well as
reducing the debt level.
We believe that the above-mentioned transaction by First
Industrial Realty will provide it financial flexibility and
position it favorably to pursue expansion opportunities, which
will go a long way in enhancing top-line growth. Though, the
share dilution impact of the transaction is unavoidable.
In late February, First Industrial Realty reported
fourth-quarter 2013 funds from operations (FFO) per share of 27
cents, which missed the Zacks Consensus Estimate by a penny.
Nevertheless, this came above the prior-year quarter figure of 18
The year-over-year increase was attributable to solid
occupancy gains and operating portfolio performance.
Consequently, this industrial real estate investment trust (REIT)
also hiked its first-quarter 2014 dividend by 20.6% sequentially.
Moreover, as of Dec 31, 2013, the company's cash and cash
equivalents stood at $7.6 million, up from $4.9 million at the
end of 2012.
First Industrial Realty currently carries a Zacks Rank #2
Note: FFO, 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.
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