The Wall Street Journal - September 22, 2010
US Federal Properties Trust Inc. unveiled estimated terms of its planned initial public offering, as the real-estate company raises funds to repay debt and for other purposes.
The company--which acquires, develops and manages properties leased to the U.S. government--is seen selling at least 13.8 million shares at an estimated price of $19 to $20 a share, according to a filing with the Securities and Exchange Commission. This is essentially all of the stock to be outstanding after the IPO.
US Federal Properties, which plans to become a real-estate investment trust this year, had estimated raising up to an estimated $350 million when it filed its initial IPO plans in May.
Upon the completion of the IPO, the company expects to own 19 single-tenant properties in 11 states. It has developed eight federal government-leased properties since 2001 with another one under way. Tenants include agencies such as the Federal Bureau of Investigation and federal courts.
The company expects government leasing of buildings will continue to grow owing to the large capital expenditures associated with constructing and maintaining such buildings themselves.
For the six months ended June 30, U.S. Federal Properties' earnings rose 23% to $901,000 as revenue nearly doubled to $3.6 million.
The company has been approved to list on the New York Stock Exchange under the symbol USFP.
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