Associated Estates Announces Closing of Common Share Offering

CLEVELAND, June 27, 2012 /PRNewswire/ -- Associated Estates Realty Corporation (NYSE, NASDAQ: AEC) today announced that it completed the sale of 6,325,000 of its common shares at a price of $14.40 per share, representing 5,500,000 of its common shares sold pursuant to its previously announced public offering and an additional 825,000 common shares pursuant to the underwriters' option to purchase additional common shares.  The net proceeds were approximately $87.2 million after deducting underwriting discounts and commissions and offering expenses.  All of the shares were offered by the Company and were issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission. 

The Company intends to use the net proceeds received from the offering to fund property acquisitions and development and for general corporate purposes.  Pending application for the foregoing purposes, the Company intends to use the net proceeds to temporarily repay borrowings outstanding under its unsecured revolving credit facility.

Wells Fargo Securities, Citigroup and BofA Merrill Lynch served as Joint Book-Running Managers for the offering.  Jefferies and Raymond James served as Co-Lead Managers for the offering.  Cantor Fitzgerald & Co., Sandler O'Neill + Partners, L.P., Janney Montgomery Scott, Keefe, Bruyette & Woods, RBS, Compass Point Research & Trading, LLC, Ladenburg Thalmann & Co. Inc. and Piper Jaffray served as Co-Managers for the offering.  A final prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission.  Copies of the final prospectus supplement, when available, may be obtained from Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, New York 10152, or by calling (800) 326-5897 or e-mail [email protected]; or Citigroup, Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or by calling (800) 831-9146; or BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway, 7th Floor, New York, NY 10038, or e-mail [email protected].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement forming part of the effective shelf registration statement.

Associated Estates is a real estate investment trust ("REIT") and is a member of the Russell 2000 and the MSCI US REIT Indices.  The Company is headquartered in Richmond Heights, Ohio.  Associated Estates' portfolio consists of 50 properties containing 13,163 units located in ten states.

For more information, please contact:

Jeremy Goldberg
(216) 797-8715

SOURCE Associated Estates Realty Corporation

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