Home Properties Offers Common Stock - Analyst Blog

By Zacks Equity Research,

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Home Properties Inc . ( HME ) declared an underwritten public offering of 3.5 million common shares. Additionally, this real estate investment trust (REIT) expects the underwriters to be provided with a 30-day option to purchase up to an additional 525,000 common shares.

The proceeds from the offering will be primarily utilized to fund acquisitions, and new development and redevelopment of apartment communities. Additionally, the proceeds would be used for general business purposes, which might comprise capital expenditures, payment of outstanding debt and other working capital requirements.

The sole book-running manager for the offering is BofA Merrill Lynch, a unit of Bank of America Corporation ( BAC ).  

Though the intention of repaying debt is encouraging as it will lessen the company's interest expenses, the offering would result in share dilution.  

Earlier, in 2011, Home Properties declared the sale of 5.25 million common shares through an underwritten public offering.  

Some other REITs that recently announced public offering include Gladstone Commercial Corp . ( GOOD ) and Chatham Lodging Trust ( CLDT ). Gladstone declared an underwritten public offering of 1.1 million shares. The company also anticipates that the underwriters will be provided with a 30-day option to purchase up to an additional 165,000 common shares to cover any over-allotments.

On the other hand, Chatham declared a public offering of 4.5 million common shares of beneficial interest, with a par value of one cent per share. Further, to cover any over-allotments, the company furnished a 30-day option to underwriters to buy up to an additional 675,000 shares.

Home Properties currently carries a Zacks Rank #3 (Hold).

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

CHATHAM LODGING (CLDT): Free Stock Analysis Report

GLADSTONE COMML (GOOD): Free Stock Analysis Report

HOME PPTYS INC (HME): Free Stock Analysis Report

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Zacks Investment Research

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

This article appears in: Investing , Business , Stocks
Referenced Stocks: BAC , CLDT , GOOD , HME

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