Real estate investment trust (REIT)
) operating subsidiary - Prologis, L.P. - priced senior
unsecured notes offering worth €700 million. The notes, which are
set to mature on Feb 20, 2024 and carry an annual coupon rate of
3.375%, were priced at 98.919% of the principal amount.
CHATHAM LODGING (CLDT): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
QTS REALTY TRST (QTS): Free Stock Analysis
SABRA HEALTHCR (SBRA): Free Stock Analysis
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Prologis' operating partnership will utilize the net proceeds
from the offering in paying back or repurchasing debt and meeting
other corporate needs. However, in the short run, the unit
proposes to employ the proceeds for settlement of its debt that
includes multi-currency senior term loan and/or global line of
credit. We believe the payment of debt is encouraging as it will
reduce interest expenses.
Notably, Prologis Inc. will provide absolute guarantee for the
notes. The company expects the offering that opened on Feb 11,
2014 to close by Feb 20, 2014, subject to the fulfillment of
customary closing conditions.
Last month, Prologis reported its fourth-quarter 2013 results
with adjusted FFO (fund from operations) per share of 43 cents,
beating the Zacks Consensus Estimate by a penny. Performance
reflected higher investment management fees, strategic
investments and a modest leasing activity.
As of Dec 31, 2013, Prologis' total assets were $24.6 billion.
Cash and cash equivalents stood at $491.1 million while
outstanding debt was $9.0 billion.
Prologis currently has a Zacks Rank #3 (Hold). However, other
REIT -equity trust stocks worth considering include
QTS Realty Trust, Inc.
Sabra Health Care REIT, Inc.
Chatham Lodging Trust
). Both QTS Realty and Sabra Health Care carry a Zacks Rank #1
(Strong Buy) while Chatham Lodging holds a Zacks Rank #1 (Buy).
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.