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Based in Houston, TX, AmREIT (NYSE:AMRE) has scheduled a $51 million IPO with a market capitalization of $645 million at a price range mid-point of $15 for Friday July 24, 2012.

Seven other IPOs are scheduled for the week of July 23. The full IPO calendar is available here.

AMRE filed an updated S-11 on July 17, 2012.

Manager, Joint Managers: Jefferies; Baird.
Co Managers: Wunderlich Securities; J.J.B. Hilliard; W.L. Lyons; PNC Capital Markets.

SUMMARY
AMRE owns and develops neighborhood and community shopping centers. The current portfolio is 96% leased. At the price range mid-point, AMRE is projected to pay a 5.3% distribution.

VALUATION
AMRE is priced at a price-to-book value premium, see "compare" below. Compared to other shopping center REITs, AMRE appears priced to sell to retail investors.

CONCLUSION
IPOdesktop believes investors interested in shopping center REITS should consider Retail Properties of America Inc. (NYSE:RPAI), with a current payout of 6.8% and leased ratio of 91%. RPAI appears is preferable to AMRE's payout of 5.3% with 96% leased.

Financial Glossary

Valuation Ratios

IPO Mrkt

Div

LT Debt/

Price /

Price /

% offered

Cap (MM)

payout

Equity

BookValue

TangibleBV

in IPO

AmREIT (AMRE)

$645

5.3%

1.0

3.9

1.4

8%

COMPARE

IPO Mrkt

Div

LT Debt/

Price /

Price /

COMPARE

Cap

payout

Equity

BookValue

TangibleBV

% Leased

AmREIT (AMRE)

$645

5.3%

1.0

3.9

1.4

96%

Retail Properties of America (RPAI)

$2,240

6.8%

1.3

1.1

1.2

91%

Retail Properties of America

$2,240

6.8%

1.1

0.9

1.1

16%

RPAI IPO'd at $8 April 4, 2012, and recently was $9.73
One Liberty Properties, Inc. (NYSE:OLP)

6.6%

Agree Realty (NYSE:ADC)

6.8%

Regency Centers (NYSE:REG)

3.8%

Source: Google Finance
Compare Valuation Ratios

Mrkt

Div

LT Debt/

Price /

Price /

Percent

Cap

payout

Equity

BookValue

TangibleBV

Leased

AmREIT (AMRE)

$645

5.3%

1.0

3.9

1.4

96%

Retail Properties of America

$2,240

6.8%

1.1

0.9

1.1

91%

Regency Centers

$4,330

3.9%

1.1

2.4

2.4

93%

. Shopping centers
Equity One (NYSE:EQY)

$2,500

4.4%

0.9

1.8

1.9

90%

. Neighborhood & community shopping malls
Pennsylvania REIT (NYSE:PEI)

$847

4.2%

4.0

1.5

1.6

93%

. Retail malls, strip & power centers
Macerich (NYSE:MAC)

$7,720

3.8%

1.2

2.7

2.8

92%

. Regional & community shopping centers
General Growth Prop (NYSE:GGP)

$16,740

2.4%

2.0

2.0

2.0

94%

. Regional malls
Source: Google Finance

BUSINESS
AMRE is a full-service, vertically integrated and self-administered real estate investment trust, or REIT, that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with significant barriers to entry.

AMRE shopping centers are often anchored by strong national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. Remaining tenants consist primarily of specialty retailers and national and local restaurants.

AMRE's portfolio is predominantly concentrated in the affluent, high-growth submarkets of Houston, Dallas, San Antonio and Austin, Texas.

PORTFOLIO
As of March 31, 2012, AMRE's portfolio consisted of 29 high-quality wholly-owned properties, totaling approximately 1.2 million square feet of GLA, which were approximately 96% leased, with a weighted average remaining lease term of 5.2 years.

Leased to national, regional and local tenants, AMRM's shopping centers are primarily located throughout Texas and Atlanta.

AMRE's philosophy continues to be matching long-term leases with long-term debt structures while targeting a ratio of debt-to-total enterprise value of no more than 45% going forward.

EMPLOYEES
As of March 31, 2012, AMRE had 42 full-time employees and two part-time contract personnel

DISTRIBUTIONS
$.80 annual distribution rate is an annual 5.3% rate at the price range mid-point of $15

USE OF PROCEEDS
AMRE expects to net $46 million from the IPO, with proceeds to repay debt.

Disclaimer: This AMRE IPO report is based on a reading and analysis of AMRE's S-11 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Source: IPO Preview: AmREIT (AMRE)