Capital Square Housing Trust Fully Subscribes Preferred Stock Offering
- Editor
- Jun 26
- 1 min read
Whats Happening:
Capital Square Housing Trust has successfully completed its offering of two million shares of Series 1 Redeemable & Convertible 9.0% Preferred Stock, raising $24 million. The funds will be used to finance additional acquisitions, UPREIT transactions, and general corporate purposes. This offering is expected to support approximately $200 million in UPREIT transactions, significantly impacting the trust's growth strategy.
Key Moves:
Capital Square Housing Trust raises $24 million through preferred stock offering
Funds to be used for acquisitions, UPREIT transactions, and corporate purposes
Offering expected to support $200 million in UPREIT transactions
By The Numbers:
2 million shares of Series 1 Redeemable & Convertible 9.0% Preferred Stock offered
9.0% annual dividend paid monthly to investors
5% discount on common stock conversion after fourth anniversary
Key Quotes:
"The proceeds of this preferred stock offering will help fund approximately $200 million in UPREIT transactions," said Louis Rogers, founder and co-chief executive officer of Capital Square.
"We appreciate the confidence of our Capital Square Housing Trust investors," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square.
"Our preferred shareholders not only enjoy a strong 9% annual dividend but also have the opportunity to convert their holdings at a 5% discount upon maturity, further enhancing the long-term value of their investment."
Bottom Line:
Capital Square Housing Trust's successful preferred stock offering demonstrates strong investor confidence and provides significant capital for growth. The $24 million raised will enable the trust to pursue substantial UPREIT transactions, potentially transforming its portfolio and market position. This move aligns with the trust's strategy of offering tax-advantaged investment options while expanding its multifamily real estate holdings.
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