First Industrial Commences ATM Program - Analyst Blog

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First Industrial Realty Trust, Inc. ( FR ) 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 requirements. 

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 ( WFC ), Mitsubishi UFJ Securities of Mitsubishi UFJ Financial Group, Inc. ( MTU ) and BofA Merrill Lynch of Bank of America Corp. ( BAC ) will support First Industrial Realty as the sales agent for the ATM offering.

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 cents.

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 (Buy).

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.



BANK OF AMER CP (BAC): Free Stock Analysis Report

FIRST INDL RLTY (FR): Free Stock Analysis Report

MITSUBISHI-UFJ (MTU): Free Stock Analysis Report

WELLS FARGO-NEW (WFC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BAC , FR , MTU , WFC

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