National Retail Properties Inc. (NNN) recently issued a public offering of 7 million shares at a price of $25.75 per share. As part of the offering, the company will provide a 30-day option to the underwriters for purchasing an additional 1.1 million shares.
Consistent with its investment objectives and strategies, National Retail intends to utilize the proceeds generated from the offering to acquire additional assets and repay debts under its credit facility as well as for other general corporate purposes.
This public offering will enable the company to attain financial flexibility and seize investment opportunities and acquisitions, which in turn will facilitate in boosting top-line growth. As of September 30, 2011, National Retail cash position stood at $19.7 million.
National Retail reported third-quarter 2011 FFO (fund from operations) of $34.6 million or 39 cents per share compared with $29.6 million or 36 cents in the year-earlier quarter. 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. The company recently increased its 2011 FFO guidance in the range of $1.54 to $1.56.
National Retail is a publicly owned equity real estate investment trust that acquires, owns, manages, and develops retail properties in the United States.
National Retail currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendationon the stock. One of National Retail’s closest competitors, Developers Diversified Realty Corp. (DDR), also holds a Zacks #3 Rank, which translates into a short-term Hold rating.
