Thursday, April 05, 2012

Retail Properties - Use of Proceeds

Retail Properties of America just filed its final prospectus related to its IPO and listing. It raised $254.4 million, and expects to net $231 million after underwriting discounts and expenses.  From the net proceeds, $82 million will pay down RPAI's senior unsecured line of credit, which will be paid to affiliates of the underwriters.  RPAI will use $95 million to repay a cross-collateralized pool of mortgages.  The final $55 million will go to repurchase an affiliate's interest in a joint venture between RPAI and the affiliate. 

1 comment:

Anonymous said...

Retail Properties of America (RPAI) ...This REIT is one of the largest owners and operators of shopping centers in the U.S. About 90% of its centers are anchored by a grocery store or discounter like Target(TGT_), Home Depot (HD_)or Bed Bath & Beyond(BBBY_). The leases are long-term and only 17% are expiring before 2014.

The real selling point for this offering is the dividend payout. Retail Properties said it will return 4.9%, which is at the high end of payouts. Regency Centers pays out 4.7%, while General Growth Properties is on the low end with a 2.4% payout.