Glimcher Realty Trust (GRT) recently announced that it has priced 20 million shares for approximately $9.90 per share. Glimcher Realty also plans to offer a 30-day option to the underwriters for purchasing additional 3000,000 shares.
The company expects to utilize the net proceeds from this offering to fund the acquisition of 80% indirect ownership interest in Pearlridge Center in Honolulu, Hawaii from an affiliate of Blackstone Real Estate Partners VI and for other general corporate purposes.
This public offering will enable the company to attain financial flexibility and position it favorably to pursue investment opportunities, which go a long way in enhancing top-line growth.
Glimcher Realty reported 4Q11 funds from operations (FFO) of $22.0 million or 20 cents per share compared with $18.0 million or 20 cents per share in 4Q10. Funds from operations, a widely used metric to gauge the performance of REITs is obtained after adding depreciation andother non-cash expenses to the net income.
Glimcher Realty Trust, a real estate investment trust, is a leader in the ownership, management, acquisition and development of malls, which includes enclosed regional malls and open-air lifestyle centers, as well as community centers.
Glimcher Realty currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Simon Property Group (SPG) holds a Zacks #2 Rank, which implies a short-term Buy rating.
To read this article on Zacks.com click here.
Zacks Investment Research
