In an effort to infuse capital, Mass.-based real estate
investment trust (REIT) -
Winthrop Realty Trust
) - disclosed the pricing of public offering of 2.75 million
common shares of beneficial interest at $11.45 per share.
Moreover, underwriters have been granted an option for 30 days to
acquire up to an additional 412,500 shares of common stock.
CUBESMART (CUBE): Free Stock Analysis Report
DOUGLAS EMMETT (DEI): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
SOTHERLY HOTELS (SOHO): Get Free Report
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This capital infusion would help Winthrop improve its financial
flexibility. The company plans to invest the proceeds in
financing its future buyouts. This may include the company's
recently disclosed purchase of four newly constructed class A
luxury apartment buildings for a total of $246 million.
Moreover, the company may meet its other working capital needs,
capex expenses, tenant improvements and leasing commissions with
the funds generated through this stock offering.
As a matter of fact, of late, Winthrop is focused on riding on
the growth trajectory by capitalizing on opportunistic
investments. In august, the company disclosed a number of
strategic measures aimed at restructuring its portfolio and
improving its fundamentals.
These include buying its joint venture (JV) partner's 50%
interest in the mezzanine loan, indirectly secured by an
Ill.-based property for $30 million, a deal to buy a property in
Oklahoma City, a sale agreement for a San Antonio property and
the disposition of a Seabrook asset.
Though the stock offering would lead to share dilution, we
believe that the capital infusion effort would provide it with
the much needed financial flexibility that would help in carrying
out its repositioning initiatives. Such moves, in turn, would
help enhance its portfolio quality and drive bottom-line growth.
Winthrop carries a short-term Zacks Rank #3 (Hold). Other
well-performing REITs include
Sotherly Hotels Inc.
Douglas Emmett Inc.
). While Sotherly carries a Zacks Rank #1 (Strong Buy), CubeSmart
and Douglas Emmett have a Zacks Rank #2 (Buy).