Real Estate Expertise
For the past five years, FBR Capital Markets has been the #1 ranked book-running manager for all common stock offerings for U.S. real estate companies with a market capitalization of $1 billion or less,1 and we are by far the leading investment bank in real estate 144A private placements.2 In 2006, we participated in 10 real estate capital-raising transactions with an aggregate value of $1.6 billion and nine merger and acquisition and advisory assignments, a growing part of our business.
In the first quarter of 2007, we completed three important transactions. We were the joint bookrunner for a $455 million initial public offering for MerueloMaddux a Southern California-based developer and redeveloper focused on industrial and multifamily real estate, including some highly valuable properties in and around Los Angeles. We co-managed a $289 million follow-on offering for DiamondRock Hospitality, a company for which we had previously completed a $210 million private placement followed by a $313 million IPO. Lastly we were sole placement agent for a $276 million private placement for an externally managed offshore company focused on acquiring structured commercial real estate products in Japan, Singapore and China.
We have continued to build out our real estate research platform, adding coverage of home builders and retail REITs, broadening coverage of mortgage and lodging REITs. We publish, in addition to individual company reports, Property Week, which covers developments across the sector in an easily accessed format, and FBR Mall Sales Monitor, covering retail REITs.
Investment Banking
The group focuses on capital raising for commercial and residential developers, commercial and retail REITs, and owners and developers of hospitality and lodging properties. The group also serves structured finance and net lease companies, including companies focused on special purpose assets.
Notable transactions during 2006 included a sole-managed $140 million private placement for an originator of tax-deferring investment vehicles and income-oriented real estate investment programs; a secondary offering for BRT Realty Trust, for which we were the sole bookrunner; and an advisory assignment for JE Roberts Company, a long-term client, in its acquisition of Jameson Inn, a $371 million transaction. In all of our transactions, our focus is on experienced management teams with business plans that can produce above average returns for investors.
Institutional Brokerage
FBR Capital Markets focuses exclusively on areas in which we can clearly make a difference and add value. We do this by establishing broad and deep specialized industry platforms that offer sector-concentrated expertise in research, trading, distribution, investing, mergers and acquisitions, and capital-raising.
Investment Banking Leads
FBR believes that the independence and integrity of our Research team are paramount to our mission. FBR Research is completely independent from FBR Investment Banking.
Research Analysts
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David Khani, CFA
Director of Research, Senior Managing Director, Energy & Natural Resources
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David Hilal, CFA
Associate Director of Research, Senior Managing Director and Group Head of Technology, Media & Telecom