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Camden Trust Aims To Raise Capital, Slash Dividend

The Associated Press

HOUSTON (AP) — Real estate investment trust Camden Property Trust said Wednesday it was pricing a public offering of 9 million new common shares at $27.50 apiece.

The company said it hopes to raise $236.7 million with the share issuance, which it intends to use to retire debt and for general corporate purposes.

It said its underwriters, Merrill Lynch & Co. and J.P. Morgan, will have a 30-day option to obtain 1.35 million additional shares if there is excess demand.

Camden did not say when it would issue the new shares.

The trust also said that it would reduce its quarterly dividend payments by 36 percent to 45 cents per share from 70 cents per share to account for the increased number of shares in circulation.

Camden expects to pay 45 cents per share in cash in the second, third and fourth quarters of this year. The actual dividend may vary based on circumstances at the time, it said.

Camden shares rose 18 cents to $29.77 in Wednesday afternoon trading.

Meanwhile, Fitch Ratings said Wednesday that Camden's increased use of secured debt was a concern. It also said the economy was hurting the company's operating results.

The ratings agency trimmed the rating to "BBB" from "BBB+" on March 24. The new rating is two notches above non-investment, or "junk," status. Fitch published an analysis of the company's credit last week.

Camden owns interests in and operates 182 properties containing 63,000 apartment units in the United States.