REIT Parkway Properties Posts Higher 1Q Results

The company's average rent per square foot rose 4.9 percent to $22.79 during the quarter. On a same-store basis, average rent per square foot climbed 3.2 percent to $22.74.

Average occupancy rate declined to 90 percent from 91 percent in the prior-year quarter.

Some 55 leases were renewed or expanded during the quarter, while 23 new leases were signed at an annual cost of $4.25 per square foot — a 20.1 percent drop from the fourth quarter's figure, which reflects industrywide pressure on landlords to ease leasing terms.

Also Wednesday, the company announced a public stock offering of 6.25 million shares. The underwriter, UBS Investment Bank, will be given the option to buy up to 937,500 additional shares within 30 days.

Parkway Properties aims to use the net proceeds of the stock sale to pay down its line of credit and to cover general expenses.

Shares fell 61 cents, or about 4 percent, to $14.29 in aftermarket trading following the release of the earnings. In the regular session, the stock added 3 cents to $14.90.