Annaly Capital Slides on Secondary Offering

(Annaly Capital secondary offering report updated with similar offerings from Mack-Cali Realty and DCT Industrial Trust.)

NEW YORK ( TheStreet) -- Annaly Capital Management ( NLY) shares fell sharply in early trading after the real estate investment trust announced the pricing of a secondary offering.

Annaly Capital will sell 75 million shares of its common stock for $17.30piece, and expects to raise gross proceeds of around $1.3 billion before expenses.

Underwriters will be granted an over-allotment option of up to an additional 11.3 million shares, Annaly Capital said.

Annaly Capital shares fell 3% to $17.40 at midday amid very heavy trading. Nearly 89 million shares had changed hands halfway through the day's session, compared with the stock's average daily volume of just 15 million.

Annaly Capital announced and completed a prior secondary offering of 75 million shares in early January.

The REIT said, at the time, that it planned to use the proceeds from the sale to buy mortgage-backed securities for its investment portfolio.

It will also use some of the raised capital for general corporate purposes, which may include additional investments and repayment of short-term debt.

Mack-Cali Realty ( CLI) shares fell 4% Tuesday as the office property REIT also announced the pricing of a secondary offering.

Mack-Cali, based in Edison, NJ, priced 6.25 million shares at a price of $33, and granted underwriters an option to purchase up to an additional 937,500 shares to cover overallotments, if any.

Mack-Cali expects to raise around $197.7 million from the offering, before giving effect to any exercise of the underwriters' overallotment option.

It plans to use the net proceeds to repay borrowings under its unsecured revolving credit facility and for general corporate purposes.

DCT Industrial Trust ( DCT), an operator of bulk distribution and light industrial properties, lost 2.1% in Tuesday trading.

The Denver-based EIT said early Tuesday it priced a secondary offering of 19 million common shares at $5.35 per share. It also granted underwriters an overallotment option for up to 2.85 million additional shares.

DCT, which reported in-line fourth-quarter earnings but maintained a 2011 outlook with a fair amount of downside to Wall Street's consensus view, expects to raise about $95 million in net proceeds from the sale.

DCT intends to use the capital to repay amounts outstanding under its senior unsecured revolving credit facility and the remaining net proceeds for general corporate purposes, including for future acquisitions.

Earlier this week DCT maintained its quarterly dividend of 7 cents per share.

-- Written by Miriam Marcus Reimer in New York.

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