UPDATE 1-Camden to cut quarterly dividend by 36 pct

* To cut quarterly dividend to $0.45/shr

* Says 9 mln stock offering priced at $27.50 each

May 6 (Reuters) - Real estate investment trust Camden Property Trust (CPT.N) said it expects to reduce its quarterly dividend to 45 cents a share for the rest of 2009, to help maintain financial flexibility.

Camden, which currently pays a dividend of 70 cents a share, said it expects to make the dividend payments fully in cash.

Separately, the apartment REIT said its public offering of 9 million shares was priced at $27.50 apiece. It has granted underwriters an option to purchase up to 1.35 million additional shares to cover any over-allotments.

The company intends to use the net proceeds, expected to be about $236.7 million, partly to repay debt.

Camden said the reduction in dividend was made partly to recognize the increased number of shares expected to be outstanding upon completion of the public offering.

Shares of the Houston-based company were trading down 10 cents at $29.49 Wednesday morning on the New York Stock Exchange. (Reporting by Biswarup Gooptu in Bangalore; Editing by Anne Pallivathuckal)