National Retail Closes Offering - Analyst Blog
September 15 2011 - 1:30PM
Zacks
National Retail Properties Inc. (NNN) recently
closed an underwritten public offering of 9.2 million shares at an
average price of $26.07 per share. The public offering also
included 1.2 million shares sold to the underwriters. After
deducting underwriting discounts and other expenses, the company
generated net proceeds of $229.4 million.
Consistent with its investment objectives and strategies,
National Retail intends to utilize the proceeds generated from the
offering to acquire additional assets, repay debts under its credit
facility and for other general corporate purposes.
This public offering will enable the company to attain financial
flexibility and seize investment opportunities and acquisitions,
which go a long way in enhancing top-line growth.
National Retail reported second quarter 2011 FFO (funds from
operations) of $32.1 million or 38 cents per share compared with
$29.4 million or 36 cents per share in the year-earlier
quarter.
Funds 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
increased its 2011 FFO guidance from the range of $1.50- $1.53 to
$1.52 - $1.55 per share, driven by higher acquisition volume.
The company expects its acquisition volume to increase in the
range of $400 million - $500 million, from the previous range
of $200 million to $250 million.
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 has a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term Neutral recommendation on the stock. One of its
competitors, Developers Diversified Realty Corp.
(DDR) also holds a Zacks #3 Rank.
DEV DIVERFD RLT (DDR): Free Stock Analysis Report
NATL RETAIL PPT (NNN): Free Stock Analysis Report
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