Excel Trust, Inc. recently completed the public offering of 12.5 million shares of its common stock, which was previously announced. Apart from this, it also completed the sale of 1.875 million additional shares of its common stock thereby fully exercising the over allotment option granted to the underwriters.
Sold at a price of $10.94 per share, the company received gross proceeds of approximately $157 million. After taking into account the underwriting discount and other expenses related to the offering, the net proceeds work out to approximately $150.2 million.
During the first quarter 2011 Excel Trust had signed a contract to purchase The Promenade, a retail shopping center located in Scottsdale, Arizona spanning 433,000 square feet for approximately $110 million. The net proceeds generated from the offering will be used to fund a portion of the purchase price of The Promenade, to repay the outstanding debts under its unsecured revolving credit facility, for future acquisitions and for other general corporate purposes.
During the first quarter of 2011, Excel Trust reported Funds from Operations (FFO) of $3.4 million or 17 cents per share. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Excel Trust, Inc. is a retail focused real estate investment trust (REIT) that targets value oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties.
Excel Trust currently retains a Zacks #5 Rank, which translates into a short-term Strong Sell rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, General Growth Properties Inc. (GGP - Analyst Report), currently retains a Zacks #1 Rank which translates into a short term Strong Buy rating.