We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lexington Realty Prices $400M of Senior Notes at 99.233%
Read MoreHide Full Article
Lexington Realty Trust (LXP - Free Report) priced a public offering of 2.700% senior unsecured notes, with an aggregate principal amount of $400 million. The notes have been priced at 99.233% of the principal amount and will yield 2.788%.
Conditional on the satisfaction of certain closing norms, the notes offering is anticipated to close on Aug 28, 2020. The debt securities are slated to mature on Sep 15, 2030.
Lexington expects to use the net proceeds from the offering to redeem debt with near-term maturities. Specifically, the proceeds will be used to fund the previously-announced redemption of outstanding 4.25% senior notes due 2023 and 4.40% senior notes expiring in 2024 for a maximum combined principal amount of $300 million.
The remaining amounts will be used for general corporate purposes like repaying outstanding balance under the company’s revolving credit facility and future acquisition opportunities.
Notably, amid these testing times, liquidity has become a focal point and concern for companies as they make efforts to shore up liquidity for unforeseeable events. Hence, Agree Realty’s efforts to strengthen its liquidity and tap the debt market amid a low interest-rate environment are a strategic fit. Moreover, by repaying outstanding balance under its revolving credit facility, the company will enjoy higher availability that can be drawn to withstand the current crisis and unexpected negative externalities in the future.
Moreover, the e-commerce boom is driving growth in industries, while companies’ efforts to improve supply chain efficiencies, demand for logistics infrastructure and efficient distribution networks have been increasing. These are helping the industrial real estate market to grow. Hence, amid these favorable tailwinds, Lexington Realty’s focus to upgrade its portfolio on the back acquisitions bodes well for long-term growth.
Shares of this Zacks Rank #3 (Hold) company have gained 8.9% over the past year against the industry’s decline of 8%.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimate for 2020 has been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lexington Realty Prices $400M of Senior Notes at 99.233%
Lexington Realty Trust (LXP - Free Report) priced a public offering of 2.700% senior unsecured notes, with an aggregate principal amount of $400 million. The notes have been priced at 99.233% of the principal amount and will yield 2.788%.
Conditional on the satisfaction of certain closing norms, the notes offering is anticipated to close on Aug 28, 2020. The debt securities are slated to mature on Sep 15, 2030.
Lexington expects to use the net proceeds from the offering to redeem debt with near-term maturities. Specifically, the proceeds will be used to fund the previously-announced redemption of outstanding 4.25% senior notes due 2023 and 4.40% senior notes expiring in 2024 for a maximum combined principal amount of $300 million.
The remaining amounts will be used for general corporate purposes like repaying outstanding balance under the company’s revolving credit facility and future acquisition opportunities.
Notably, amid these testing times, liquidity has become a focal point and concern for companies as they make efforts to shore up liquidity for unforeseeable events. Hence, Agree Realty’s efforts to strengthen its liquidity and tap the debt market amid a low interest-rate environment are a strategic fit. Moreover, by repaying outstanding balance under its revolving credit facility, the company will enjoy higher availability that can be drawn to withstand the current crisis and unexpected negative externalities in the future.
Moreover, the e-commerce boom is driving growth in industries, while companies’ efforts to improve supply chain efficiencies, demand for logistics infrastructure and efficient distribution networks have been increasing. These are helping the industrial real estate market to grow. Hence, amid these favorable tailwinds, Lexington Realty’s focus to upgrade its portfolio on the back acquisitions bodes well for long-term growth.
Shares of this Zacks Rank #3 (Hold) company have gained 8.9% over the past year against the industry’s decline of 8%.
Stocks to Consider
Omega Healthcare Investors, Inc.’s (OHI - Free Report) funds from operations (“FFO”) per share estimate for the ongoing year have remained unchanged at $3.07 over the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimate for 2020 has been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>