AmREIT IPO watch: According to the amendment No. 3 to Form S-11 filed with the Securities and Exchange Commission on July 16, 2012, the shopping center operator intends to sell 3,400,000 shares of its Class B common stock in this public offering. AmREIT IPO price is anticipated to be between $14.00 and $16.00 per share. The Class B common stock will be listed on the New York Stock Exchange under the symbol “AMRE.” Each share of Class A common stock and Class B common stock represents one vote per share. The shares of Class B common stock will vote together with the shares of Class A common stock as a single class.
Jefferies and Baird are working as the representatives of the underwriters of AmREIT IPO. Wunderlich Securities, J.J.B. Hilliard, W.L. Lyons, LLC and PNC Capital Markets LLC are also involved in this deal. The underwriters have an option to buy up to 510,000 additional shares of the Class B common stock at AmREIT IPO price.
AmREIT, Inc is a real estate investment trust engaged in owning, operating, acquiring and selectively developing and redeveloping primarily high-end shopping centers in 23 states.
As of March 31, 2012, the company has owned 29 wholly-owned properties with approximately 1.2 million square feet of GLA (Gross Leasable Area), which were approximately 96% leased with a weighted average remaining lease term of 5.2 years.
For the three years ended December 31, 2009, 2010 and 2011, the company booked $35.02 million, $33.37 million and $36.92 million in revenues, respectively. Operating incomes for the three-year period were $10.88 million, $7.05 million and $$14.39 million, respectively. Net incomes for the three years were $5.26 million, $6.31 million and $4.24 million, respectively. According to the preliminary financial results disclosed in the prospectus for the three months ended June 30, 2012, show that operating income of $3.71 million, net income of $1.64 million on revenue of $10.06 million.
Net proceeds from the sale of Class B common shares in AmREIT IPO are anticipated to be approximately $46.2 million, or approximately $53.3 million if the underwriters’ over-allotment option is exercised in full. The company plans to use the net proceeds to repay secured debt obligations; and for general corporate and working capital purposes.