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Princeton, New Jersey – Essential real estate real estate trust Ltd. (NYSE: NYSE:), an internally managed real estate investment trust (REIT), has begun a public offering of 8,000,000 shares of its common stock on a forward basis. The offering is being managed by BofA Securities, Wells Fargo Securities, Truist Securities and Mizuho as joint bookrunning managers.
The Company has entered into forward sales agreements with the Joint Bookrunning Managers or their affiliates. These agreements are for 8 million shares, with the underwriters having a 30-day option to purchase up to an additional 1.2 million shares.
Futures buyers are expected to borrow and sell these shares to the underwriters, but under certain conditions, such as excessive borrowing costs or the inability to borrow the shares despite reasonable efforts. There is no obligation to do so.
Essential Properties will not immediately receive any proceeds from the sale of shares by futures purchasers. However, the Company intends to issue and sell shares to futures purchasers upon completion of physical settlement of the forward sales contract, which is expected to occur within approximately 12 months from the date of the supplementary prospectus. The net proceeds from this settlement will be contributed to the Company's operating partnership in exchange for OP Units and used for general corporate purposes, including potential future investments.
The sale of shares is being made pursuant to the Company's effective shelf registration statement filed with the Securities and Exchange Commission (SEC).
Essential Properties owns and manages properties that are net leased on a long-term basis to service-oriented or experience-based businesses. As of the end of last year, the company's portfolio consisted of his 1,873 properties across 48 states, leased to 374 tenants in 16 industries.
This article is based on statements in the press release.
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