Federal Realty Investment Trust (FRT), a leading real estate investment trust (REIT), recently raised $265 million of capital to fund its development pipeline and pursue favorable acquisition opportunities.
The new capital was raised through a combination of senior unsecured notes and common shares. About $150 million was raised by 5.95% senior unsecured notes, while $115 million was raised through issuance of common shares.
Both the offers were significantly oversubscribed, which demonstrated the continued strong demand for Federal Realty securities. Year till date, the company raised $800 million of new capital. With the influx of fresh funds, the company has adequate resources to capitalize on potential acquisition opportunities from distressed sellers who are unable to refinance their properties.
Federal Realty owns, manages, develops, and re-develops retail, mixed-use and street-retail properties. Its community and neighborhood shopping centers are anchored by supermarkets, drug stores or high-volume, value-oriented retailers, which provide consumer necessities.
The company has a well-diversified tenant base with some of the strongest and most profitable retailers in the country. Furthermore, Federal Realty owns shopping centers in high income, in-fill areas of the country, with a concentration of assets in Washington DC, Boston, Philadelphia and California.
In concurrence with the recent capital raising activities, Federal Realty has revised its FFO (fund from operations) guidance for 2009, and now expects FFO for the current fiscal between $3.72 and $3.77 per share.
Read the full analyst report on “FRT”
Zacks Investment Research