DOW JONES NEWSWIRES
Real-estate investment trust Boston Properties Inc. (BXP)
launched a stock offering of 10.5 million common shares, saying it
could use the funds for investing opportunities or to reduce
debt.
Companies across a host of industries are looking to take
advantage of increased investor interest in stock offerings amid
the three-month stock rally. REITs, which borrowed heavily to
acquire and develop buildings, have tapped the market recently,
with Weingarten Realty Investors (WRI) and Kimco Realty Corp. (KIM)
both launching stock offerings earlier this year. REITs are
expected to seek billions of dollars in fresh equity over the next
few years.
Boston Properties' shares were down 3.5% in after-hours trading,
after closing up 5.4%. The company's stock has lost about half of
its value since September.
Boston Properties' offering, which grants underwriters an
overallotment option to purchase an additional 1.58 million shares,
would boost its outstanding share count by at least 8.7%. The
company had 121.3 million shares outstanding.
REITs have been hurt by the global recession as tenants can't
pay their rent or shutter stores. Properties also face rising
foreclosures and the inability to refinance existing debt or obtain
new debt.
Boston Properties, which manages and develops office, hotel and
industrial properties in Northeast and Mid-Atlantic states, said it
plans to use the funds for general business purposes. It had 147
properties with about 49.8 million square feet as of March 31, with
an overall percentage of leased space at about 94%.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com