COLUMBIA, MD—Corporate Office Properties Trust has priced a public offering of 4.8 million newly-issued common shares from which it will net proceeds of $129.3 million. The REIT has granted the underwriter an option to purchase up to an additional 720,000 shares during the next 30 days.
The offering is expected to close this week. COPT plans use the proceeds to defease and otherwise pay off secured nonrecourse debt.
The REIT has been repositioning its portfolio over the past several years, as well as cleaning up its balance sheet. The REIT has seen its debt to adjusted book ratio decline from 43.9% to 42.8% over the past quarter, according to comments made by CFO Steve Riffee during the REIT's most recent earnings call in October.
"Our adjusted debt to EBITDA ratio decreased from 7.1 times to 6.7 times, and our fixed charge coverage ratio increased from 2.6 times to 2.7 times," he also said.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
