REITs Issuing $530 MM In Common Stock

Three public stock offerings from different real estate investment trusts have been priced. The largest in terms of proceeds is from Strategic Hotels & Resorts Inc., Chicago. The IPO is expected to bring in nearly $290 million ($333 million if the over-allotment is exercised in full). Strategic is selling 66 million shares at $4.60 each. The proceeds will be used to fund a tender offer for senior notes of its operating partnership, Strategic Hotel Funding LLC, with the remainder used for general corporate purposes. American Capital Agency Corp., a Bethesda, Md., REIT that invests in mortgage-backed securities and collateralized mortgage obligations, is expecting $147 million in net proceeds from its 6 million share offering. The price is $25.75 per share. Proceeds will be used to acquire agency securities as market conditions warrant and for general corporate purposes. Finally, Getty Realty Corp., Jericho, N.Y., priced its 4.5 million share offering at $22 per share. Net proceeds are expected to be $94 million and should be used to acquire properties in the gas station and convenience store sector, repayment or refinancing of outstanding debt and general corporate purposes. All three offerings are expected to close by May 19.