NEW YORK (TheStreet) -- Shares of Spirit Realty Capital were falling 2.2% to $11.84 after-hours Wednesday after the real estate investment trust announced a public offering of common stock. Spirit Realty Capital will offer 20 million shares of common stock in the underwritten public offering. The underwriters of the offering have a 30-day option to buy up to an additional 3 million shares of common stock. The company said it expects to use the net proceeds from the public offering to repay the outstanding balance under its revolving credit facility, to fund potential future acquisitions, and for general corporate purposes. Morgan Stanley will act as the sole book-runner for the public offering. Spirit Realty Capital is a Scottsdale, Ariz.-based company that invests in single-tenet, operationally essential real estate. TheStreet Ratings team rates SPIRIT REALTY CAPITAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate SPIRIT REALTY CAPITAL INC (SRC) 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 revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: SRC's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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 SPIRIT REALTY CAPITAL INC is rather high; currently it is at 51.22%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SRC's net profit margin of 22.03% significantly trails 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 decreased by 21.7% when compared to the same quarter one year ago, dropping from $43.59 million to $34.11 million. The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SPIRIT REALTY CAPITAL INC's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: SRC Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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