Associated Estates Announces Proposed Offering of Common Shares

CLEVELAND, June 21, 2012 /PRNewswire/ -- Associated Estates Realty Corporation (NYSE, NASDAQ: AEC) today announced that it plans to sell 5,500,000 of its common shares in an underwritten public offering. The Company also plans to grant the underwriters a 30-day option to purchase up to an additional 825,000 of its common shares.  All of the shares will be offered by the Company and will be 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 will serve as Joint Book-Running Managers for the offering.  Jefferies and Raymond James will serve as Co-Lead Managers.  A preliminary prospectus supplement and 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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