Gladstone Commercial Corp.
), the McLean, VA-based real estate investment trust (REIT),
announced the pricing of 1.4 million common shares at $17.00 per
share. This common stock offering is expected to generate
approximately $22.5 million worth of net proceeds. The funds will
be utilized to finance future acquisitions, repay debts and meet
other corporate needs.
Per the terms of the public offering, underwriters have been
granted a 30-day option to buy additional common shares up to
210,000. For this offering, Jefferies LLC and Janney Montgomery
Scott LLC have been appointed as joint book-running managers, while
Oppenheimer & Co. Inc., J.J.B. Hilliard, W.L. Lyons, LLC and
Ladenburg Thalmann & Co. Inc. have been appointed as
co-managers. The offering is likely to close around Jun 6, 2014.
Gladstone Commercial is engaged in investing and owning net leased
commercial, industrial and retail real estate properties.
Currently, the company is present in 23 states. As of Mar 31, 2014,
its real estate portfolio consists of 89 properties, spanning over
9.3 million square feet area.
Although this public offering will result in share dilution, the
intention to use the net proceeds for debt repayment is
encouraging, as it will lower interest costs. In addition, the
strategic acquisitions will help Gladstone Commercial enhance its
Gladstone Commercial currently holds a Zacks Rank #4 (Sell). Some
better-ranked equity REITs include
The GEO Group, Inc.
Parkway Properties Inc.
Aviv REIT, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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