Home Properties Inc
) 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.
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HOME PPTYS INC (HME): Free Stock Analysis
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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
The sole book-running manager for the offering is BofA Merrill
Lynch, a unit of
Bank of America Corporation
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
Chatham Lodging Trust
). 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
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).