Prologis Commences ATM Program - Analyst Blog


San Francisco-based industrial real estate investment trust (REIT) Prologis Inc. ( PLD ) recently initiated an at-the-market (ATM) equity-offering program. The company plans to sell shares up to $750 million aggregate offering price, from time to time, based on market conditions and capital requirements. 

BofA Merrill Lynch, a corporate and investment banking division of Bank of America Corporation ( BAC ) and Citigroup Global Markets Inc., an operating arm of Citigroup, Inc. ( C ) will support Prologis as the managers for the ATM offering.

Prologis plans to use net proceeds from the shares sale for general corporate purposes - such as funding proposed acquisitions and investments as well as reducing the debt level.

We believe that the above-mentioned transaction by Prologis will provide it financial flexibility and position it favorably to pursue expansion opportunities, which will go a long way in enhancing top-line growth. Notably, Prologis have been riding on a growth trajectory lately, by joining hands with various retailers for build-to-suit deals. However, the share dilution impact cannot be ignored.  

Last week, the company penned a deal with a retailer for a build-to-suit facility in Poland. Spanning 376,000 square feet, this distribution center represents the fourth build-to-suit project in less than two years at Prologis Park Wroclaw V.

In March 2013, Prologis penned a new build-to-suit agreement with end-to-end e-Commerce service provider - SpeedFC - a subsidiary of Navarre Corp. ( NAVR ). The agreement is for a distribution center spanning 770,000 square feet in Etna, Ohio.

Prologis currently carries a Zacks Rank #3 (Hold).

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

CITIGROUP INC (C): Free Stock Analysis Report

NAVARRE CORP (NAVR): Free Stock Analysis Report

PROLOGIS INC (PLD): 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 , C , NAVR , PLD

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