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Starwood Property (STWD) Raises & Prices Private Offering

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Starwood Property Trust, Inc. (STWD - Free Report) has made the announcement of upsizing and pricing of the private offering of the unsecured senior notes. This is likely to add to the financial flexibility of the Greenwich, CT-based real estate investment trust (“REIT”).
 
The private offering has been upsized from the earlier declared total principal amount of $500 million to $700 million. The new private offering with a rate of 5% will be due in 2021. Subject to the satisfaction of certain customary closing conditions, the offering is expected to occur on Dec 16, 2016.

Starwood Property is mainly engaged in the origination, investment, financing and management of commercial mortgage loans and other commercial real estate-related debt investments.

Shares of Starwood Property recorded a gain of 8.3% compared with a gain of 6.2% posted by the Zacks categorized REIT and Equity Trust Other industry over the past six months. Moreover, the company’s current-year estimates moved up 4.2% to $1.97 per share over the past 30 days.


Starwood Property currently carries a Zacks Rank #2 (Buy).

Some other favorably ranked stocks in the same space include Seritage Growth Properties (SRG - Free Report) , DCT Industrial Trust Inc. and American Tower Corporation (AMT - Free Report) . All these stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Seritage Growth Properties’ current-year funds from operations (“FFO”) estimates moved up 0.9% to $2.34 per share over the past 60 days.

DCT Industrial Trust’s current-year FFO estimates moved up 2.3% over the past 60 days to $2.24 per share.

American Tower Corporation’s current-year FFO estimates moved up 1.1% over the past 60 days to $5.55 per share.

Note: FFO, 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. All EPS numbers presented in this write up represent FFO per share.

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