DCT Industrial Trust Inc. (DCT - Snapshot Report), a real estate investment trust (REIT), has recently announced its decision to offer 16.5 million shares to enhance its liquidity. The company has also decided to grant the underwriters a 30-day option to purchase up to an additional 2.5 million shares to cover the over-allotment options.
DCT Industrial intends to use the net proceeds from the offering to fund developments as well as future acquisitions, to repay debt under its secured corporate revolving credit facility, and for general working capital purposes.
BofA Merrill Lynch, the investment banking and wealth management division of Bank of America Corporation (BAC - Analyst Report), J.P. Morgan, part of J.P Morgan Chase & Co. (JPM - Analyst Report) Wells Fargo Securities, part of Wells Fargo & Company (WFC - Analyst Report) and Citigroup, Inc (C - Analyst Report) are acting as joint book running managers for the offering.
At the end of second quarter 2012, DCT Industrial had cash and cash equivalents of $3.4 million. The available balance on company’s line of credit stood at $105.0 million at the end of the quarter.
DCT Industrial owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico.
As of June 30, 2012, the company owned interests in, managed or had under development approximately 76.0 million square feet of properties, which have been leased to more than 900 customers. These included 17.0 million square feet of properties managed on behalf of five institutional management partners.
DCT Industrial currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock.