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Spirit Realty (SRC) Enhances Credit Facility, Boosts Liquidity

Zacks Equity Research
·3 min read

Spirit Realty Capital, Inc.SRC recently fortified its balance-sheet strength by closing a new $200-million unsecured term loan facility.

The latest facility comprises an accordion feature, where there is an option to increase the available term loans to a total amount of $400 million, subject to the fullfilment of some conditions and lender commitments. The maturity of the loan stands at Apr 2, 2022, and the interest is pegged at LIBOR plus 150 basis points. The interest is based on the company’s credit rating.

Per management, the company’s available liquidity reaches $700 million with the conclusion of this loan facility. The figure includes the cash balance and the revolving credit facility.

The company’s closure of this credit facility and sizeable liquidity position at these juncture bodes well. In the wake of the coronavirus pandemic, companies with improved liquidity can sail through these volatile times and Spirit Realty ensured that by enhancing the same.

Also, Spirit Realty’s diversified portfolio acts as an added protection against the vagaries of the economy now. As of Dec 31, 2019,  the company’s portfolio comparies 1752 owned properties and 43 properties securing mortgage loans. Owned properties comprised a total area of 34.1 million square feet of gross leasable area leased to 291 tenants, 28 retail industries across  48 states. This varied portfolio across the country gives it an edge to respond to these uncertain times effectively.

Shares of this Zacks Rank #3 (Hold) company have declined 40.4% compared with the industry’s fall of 24.1% over the past 12 months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Stocks to Consider

Bluerock Residential Growth REIT, Inc. BRG has growth estimate of 2.44% of the Funds From Operations per share for the current year. The stock currently sports a Zacks Rank of 1.

Gladstone Land Corp’s LAND FFO per share estimate for the ongoing year moved 3.33% north to $0.62 over the past month. The stock currently carries a Zacks Rank #2 (Buy).

Plymouth Industrial REIT’s PLYM Zacks Consensus Estimate for 2020 FFO per share moved up about 2%to $2.08 over the past two months. The stock currently holds a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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