DCT Industrial Trust Inc. (DCT), a real estate investment trust (:REIT), declared an underwriting public offering of 20,000,000 common shares to enhance its liquidity. Additionally, DCT Industrial anticipates the underwriters to be provided with a 30-day option to purchase up to additional 3,000,000 common shares to cover any over-allotments.
The net proceeds from the offering will be primarily utilized to fund future acquisitions, development activities or repayment of amounts outstanding under its senior unsecured revolving credit facility. Additionally, the proceeds would be used for general business purposes or for a combination of the above mentioned factors.
The joint book-running managers for the offering are BofA Merrill Lynch, a unit of Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc. and Jefferies.
Though the intention of repaying debt is encouraging as it will lessen DCT Industrial’s interest expenses, the offering would result in share dilution.
Last year, DCT Industrial declared an underwritten public offering of 16,500,000 common shares to enhance its liquidity. Additionally, the company decided to provide a 30-day option to the underwriters to purchase an additional 2,475,000 shares.
Some other REITs that recently announced a public offering include Gladstone Commercial Corp. (GOOD), Chatham Lodging Trust (CLDT) and Healthcare Realty Trust Incorporated (HR). Gladstone declared an underwritten public offering of 1.1 million shares. The company also anticipates the underwriters to be provided with a 30-day option to purchase up to 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.
Moreover, Healthcare Realty declared an underwritten public offering of 3,000,000 common shares to enhance its liquidity.
DCT Industrial currently carries a Zacks Rank #4 (Sell).
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