Sun Communities, Inc. (SUI - Free Report) recently upsized and priced a public offering of 4,400,000 shares of its common stock. Notably, the offering has been increased from 4,000,000 to 4,400,000 shares.
The underwriters have been granted a 30-day option to purchase up to an additional 660,000 common shares. Earlier the underwriters were offered 600,000 common shares.
The offering, subject to fulfillment of customary closing conditions, is expected to close on Sep 7, 2018.
Net proceeds of the offering will be used to reduce outstanding balance under the company’s revolving loan facility and term loan under its senior credit facility. Further, amounts will be used to fund acquisitions in the future. This will likely drive Sun Communities’ external growth on the back of accretive acquisition opportunities. Also, it will be used for working capital and general corporate purposes.
The common stock offering boosts the company's financial flexibility and helps meet its financial obligations in an efficient way. Moreover, it provides ample scope for deploying capital for long-term growth opportunities and rewarding higher returns to stockholders, at the same time.
The company is engaged in ownership, operation or enjoys stake in manufactured housing and recreational vehicle communities located in 29 states throughout the United States and Ontario, Canada.
It reported second-quarter 2018 core funds from operations (FFO) per share of $1.07, surpassing the Zacks Consensus Estimate of $1.05. It witnessed year-over-year increase in same-community net operating income and same-community occupancy.
Moreover, the trend in estimate revisions of the current-year FFO per share indicates an impressive outlook for the company. In fact, the stock has seen the Zacks Consensus Estimate for current-quarter FFO per share being revised marginally upward in a month’s time.
Further, shares of this Zacks Rank #2 (Buy) company have outperformed its industry over the past year, gaining 11.3% as against the industry’s decline of 0.9%.
Other Key Picks
Some other top-ranked stocks from the REIT space include VICI Properties (VICI - Free Report) Park Hotels and Resorts, Inc. (PK - Free Report) and PS Business Parks, Inc. (PSB - Free Report) . All three stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VICI Properties’ Zacks Consensus Estimate for 2018 FFO per share has been revised upward by a cent over the past 60 days. Its shares have gained 6.6% in the past six months.
Park Hotels and Resorts’ FFO per share estimates for third-quarter 2018 witnessed marginal upward revision in a month’s time. Its shares have appreciated 25.5% over the past six months.
PS Business Parks’ FFO per share estimates for the current year moved up marginally in the past 30 days to $6.39. The stock has rallied 13.7% in six months’ time.
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