Reuters: Global Markets: Retail Properties of America shares rise on market debut

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Retail Properties of America shares rise on market debut Apr 5th 2012, 14:21 Thu Apr 5, 2012 10:21am EDT (Reuters) - Shares of Retail Properties of America Inc (RPAI.N) rose as much as 11 percent on their market debut a day after the real estate investment trust priced its initial public offering below its expected range. The retail real estate market suffered hugely as many retailers filed for bankruptcies during the 2008 economic crisis, but now expects to touch its pre-recession highs as continued growth in retail sales makes retailers absorb new space. The company, which counts Best Buy (BBY.N), Wal-Mart (WMT.N), Stop & Shop, Bed Bath & Beyond (BBBY.O), Home Depot (HD.N) and Kohl's (KSS.N) among its 1500 tenants, had in February last year filed with the U.S. Securities and Exchange Commission to raise up to $350 million. The REIT was then known as Inland Western Retail Real Estate Trust. On Wednesday, it priced its offering of 31.8 million class A shares at $8 apeice. The Oak Brook, Illinois-based real estate investment trust, was looking to sell its shares at between $10 and $12 apiece. Retail Properties of America, which owns and operates shopping centers across 35 states in the United States, plans to use the proceeds mainly to repay debt. For 2011, funds from operations -- a key measure of profitability for real estate companies -- was 195.1 million, a jump of 16 percent over the previous year. JP Morgan, Citigroup, Deutsche Bank and KeyBanc Capital acted as lead underwriters for the offering. Shares of the company were up 9 percent at $8.70 on Thursday morning on the New York Stock Exchange. (Reporting by Tanya Agrawal in Bangalore; Editing by Supriya Kurane) Link this Share this Digg this Email Reprints

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