Two real estate investment trusts tapped the equity markets last month, and more equity and debt deals could be in the offing as interest rates decline.
Health and Retirement Properties Trust netted $105.7 million in an offering of 7 million common shares at $16 a share. The Newton, Mass.-based REIT used the proceeds to pay down debt on its revolving line of credit.
The underwriters of the deal were Smith Barney, Dean Witter Reynolds, Donaldson, Lufkin & Jenrette Securities Corp., Merrill Lynch & Co., PaineWebber and Prudential Securities.
David J. Hegarty, HRPT's president, said the company has $200 million immediately available for acquisitions.
Meanwhile, Capstone Capital Corp. offered 3 million shares of common stock at $18.13 per share. Proceeds of $59.3 million will help reduce the balance under the company's bank credit facility, the company said.
Smith Barney, PaineWebber, J.C. Bradford & Co. and Cowen & Co. were the managing underwriters.
Birmingham, Ala.-based Capstone has investments in 42 healthcare properties in 13 states. As of Sept. 30, 1995, 51% of company's investment portfolio consisted of properties operated by HealthSouth Corp. and Columbia/HCA Healthcare Corp.