HOUSTON (AP) -- AmREIT said Tuesday that it will receive about $52.1 million in net proceeds from a public offering of 3 million shares of its common stock.
The proceeds amount is after deducting underwriting discounts and commissions and other estimated offering expenses.
AmREIT is a real estate investment trust whose retail-based portfolio includes grocers and drugstore chains.
The Houston company plans to use the offering's proceeds to pay back borrowings under an unsecured revolving credit facility; to fund all or part of the acquisition of a stake in the Preston Royal East shopping center in Texas; to fund all or part of the acquisition of Woodlake Square shopping center in Houston from its joint venture partner and two of its advised funds and for general corporate purposes.
AmREIT Inc. said that the offering was priced at $18.25 per share. That's 59 cents, or 3 percent, below Monday's closing price for AmREIT shares of $18.84.
The company is giving the underwriters a 30-day option to buy up to an additional 450,000 shares to cover any excess demand.
The offering is expected to close on Friday.
AmREIT's stock declined 39 cents, or 2.14 percent, to $18.45 in Tuesday premarket trading. It is not uncommon for a company's stock to fall when it makes a public stock offering, since the offering increases the company's outstanding shares — which dilutes the value of existing shares held by stockholders.