NEW YORK (TheStreet) -- Gramercy Property Trust (GPT) shares are up 5.9% to $6.30 on extremely heavy trading volume as the real estate investment and management company announced that it was upsizing its public offering to 52 million shares from its initial plan to offer 45 million shares.
The company priced the offering at $5.90 per share with the underwriters of the offering having an additional 30 days to purchase up to 7.8 million shares of the company's common stock following the offerings scheduled close on December 16.
Gramercy will use the funds generated to repay outstanding borrowings under its revolving credit facility as well as pay for the previously announced acquisition of a portfolio of properties.
TheStreet Ratings team rates GRAMERCY PROPERTY TRUST INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRAMERCY PROPERTY TRUST INC (GPT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GPT's very impressive revenue growth greatly exceeded the industry average of 13.8%. Since the same quarter one year prior, revenues leaped by 138.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 1111.26% to $8.07 million when compared to the same quarter last year. In addition, GRAMERCY PROPERTY TRUST INC has also vastly surpassed the industry average cash flow growth rate of 6.64%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The gross profit margin for GRAMERCY PROPERTY TRUST INC is currently extremely low, coming in at 7.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.84% is significantly below that of the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 579.4% when compared to the same quarter one year ago, falling from $0.49 million to -$2.35 million.
- You can view the full analysis from the report here: GPT Ratings Report