BUZZ-REIT WP Carey down after $432 mln equity offering

Reuters02-18
BUZZ-REIT WP Carey down after $432 mln equity offering

** W.P. Carey WPC.N shares down 3.3% before the bell to $71.68 after $432 mln stock sale

** New York City-based diversified REIT and commercial real estate owner late Tues announced 6 mln shares on a forward basis

** Offering priced at $72, a 2.9% discount to stock's last sale on Tues

** WPC entered into 2-yr forward sale agreements with BofA and JP Morgan, and upon any settlements, it intends to use net proceeds to fund potential future investments, repay debt, and for general corporate purposes

** A forward sale component allows the REIT to secure current stock price and postpone new share issuance and reaping proceeds until they are needed, and delay dilution

** With ~219.2 mln shares outstanding, WPC has ~$16 bln market cap

** Through Tues close, stock up 15% YTD and up ~26% over the past 12 months

** Of 13 analysts, 3 rate "buy", 9 rate "hold" and 1 recommends "sell"; median PT $72, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment