(Annaly Capital report updated with broker action and background of recent REIT offerings.)
NEW YORK (
Annaly Capital Management
(NLY - Get Report) shares shed several points amid heavy volume Tuesday after the New York City-based real estate investment trust unveiled plans for a dilutive public offering of 75 million common shares.
Annaly Capital, a mortgage REIT, said it intends to use the money it raises to purchase mortgage-backed securities for its investment portfolio and for general corporate purposes. As of Sept. 30, Annaly Capital had roughly 622 million outstanding shares, so the offering represents an increase of 12.5%. In addition, underwriters will be able to sell an additional 11.25 million shares to cover over-allotments.
Annaly Capital shares shed 2.7% to $17.39 ahead of the closing bell Tuesday. Nearly 100 million shares were in play, compared with their average daily trading volume of 9.6 million.