Federal Realty Investment Trust FRT, the Rockville, MD-based retail real estate investment trust (“REIT”), announced the pricing of $200 million of 4.500% senior unsecured notes. The notes, due on Dec 1, 2044, were offered by the company at 105.379% of the principal amount with a yield to maturity rate of 4.179%. The public offering, expected to close on Mar 16, 2015, is subject to certain customary closing conditions.
Federal Realty plans to utilize the net proceeds accrued through this public offering for redemption of its outstanding notes, which are due on 2017 and bear 6.20% interest. The REIT also intends to use the funds for general corporate purposes, such as repayment of outstanding balance under its revolving credit facility.
Federal Realty owns, manages, develops and redevelops premium retail and mixed-use properties in the U.S. Its assets are mainly concentrated over strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the U.S. and California. The latest offering will provide the company with an added financial flexibility, thereby, helping it realize its acquisition plans in a better way.
Federal Realty currently carries a Zacks Rank #3 (Hold).
Investors interested in retail REITs may consider stocks like Acadia Realty Trust AKR, National Retail Properties, Inc. NNN and Retail Opportunity Investments Corp. ROIC. All these stocks hold a Zacks Rank #2 (Buy).
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