Devonshire REIT Announces Preferred and Common Share Offerings Totaling up to $337.5 Million

WHITEHOUSE, Ohio, Nov. 25, 2015 /PRNewswire/ -- Devonshire REIT, Inc., a private real estate investment trust, announces its first Preferred Share offering and a new offering of its Common Shares. Devonshire REIT intends to raise up to $337.5 million of proceeds from the offerings, with $200 million allocated to Preferred Shares and $137.5 million to Common Shares.

Proceeds from the offerings will be used to pay down debt, to fund property acquisitions and for general corporate purposes.

"We're excited about the opportunity to offer our first Preferred Share classes. In the current low yield environment, it's a great way for investors to increase their yield on shorter term commitments, and a good way for Devonshire to lower its average cost of capital", said Chris Campbell, President and CEO of Devonshire REIT.

"By paying down higher interest rate debt, we increase cash flow and improve our balance sheet", added Mike Denman, Chief Investment Officer. "We also continue to have opportunities to add shareholder value through property acquisitions. Although commercial real estate prices are rising, we have properties in our acquisition pipeline that fit our demographic and categorical criteria while offering solid cash-on-cash returns with appreciation potential."

Common shares are priced at $13.75 per share (subject to certain volume discounts) with an annual yield of 5.89%*, and the Preferred shares are priced at $1,000 per share with annual yields ranging from 3% to 5% depending on investment period. Distributions on Preferred Shares and Common Shares are paid monthly. The next open trading window for Preferred Shares and Common Shares is December 1^st – 10^th. All investments made on or before the 10^th of the month receive the full distribution for December.

Devonshire REIT, Inc. is a self-advised and internally managed private real estate investment trust purpose-built for fiduciaries. Since inception in 2009, the company has grown from $6M in assets under management to over $500M, and currently owns and operates 60 properties representing over 4.8 millions square feet of leasable space. Devonshire REIT does not pay commissions on invested capital, nor does is take asset management fees, so every invested dollar goes to work building shareholder value. Devonshire REIT is available for investment only through select community bank trust departments and Registered Investment Advisors. Accredited investors only. Find additional information at http://www.devreit.com.

* Common share distributions are determined monthly by the board of directors and may be more than or less than 5.89%.

This is not an offer to sell or a solicitation of an offer to buy any security or to invest in Devonshire REIT, Inc. or any of its affiliates.  Any information provided herein is for informational purposes only and may not be relied upon in connection with the acquisition of securities of Devonshire REIT, Inc. or any of its affiliates. Any securities of Devonshire REIT, Inc. that are offered for sale will be available only to accredited investors and will be sold to accredited investors only upon the acceptance by Devonshire REIT, Inc. of completed subscription documents from such accredited investors.

SOURCE Devonshire REIT, Inc.

Related Links

http://www.devreit.com