DCT Industrial Trust Inc. (DCT), a real estate investment trust (REIT), disclosed the completion of a public offering of its common shares to enhance its liquidity. In particular, the company sold 23.0 million common shares in the offering, wherein the underwriters fully exercised their option of purchasing additional shares.
After considering underwriting discounts and commissions as well as estimated offering costs, the net proceeds from the sale of common shares came in at around $158.2 million. The net proceeds will be primarily utilized to fund future acquisitions, development activities or paying back amounts outstanding under its senior unsecured revolving credit facility. Additionally, the proceeds would be used for meeting general corporate needs or for a combination of the above mentioned activities.
The joint book-running managers for the offering are BofA Merrill Lynch, a unit of Bank of America Corporation (BAC), JPMorgan Chase & Co. (JPM), Citigroup, Inc. (C) and Jefferies.
Though the sale of shares leads to share dilution, the repayment of debt is expected to lessen DCT Industrial’s interest expenses and hence encouraging.
In Sep 2012, DCT Industrial generated net proceeds of about $112.2 million by selling approximately 19.0 million common shares.
Highwoods Properties, Inc is another REIT that recently closed a public offering of common shares. The company generated about $150.9 million as net proceeds by selling 4.3 million common shares, including nearly 0.6 million shares that were sold for the full utilization of the underwriters' option to acquire additional common stock.
DCT Industrial currently carries a Zacks Rank #4 (Sell).
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