We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vornado JV Obtains 99-year Leasehold of Farley Post Office
Read MoreHide Full Article
Vornado Realty Trust (VNO - Free Report) recently disclosed that its 50% joint venture with Related Companies has acquired a 99-year leasehold of Farley Post Office. The lease was struck with Empire State Development for the commercial space at this historic building. The move will enhance Vornado’s 9 million square foot Penn Plaza holdings.
Specifically, 850,000 square feet of commercial space would be developed by the joint venture. It would include around 730,000 square feet of office space and focus on creative class tenants. The development would also involve approximately 120,000 square feet of retail space.
A $230-million upfront contribution has already been made by the joint venture for the construction of the Moynihan Train Hall. Also, a $271-million loan facility, with an initial advance of $202 million, was completed by it. In addition, the joint venture has struck a development agreement with ESD and a design-build contract with Skanska Moynihan Train Hall Builders.
Such a transaction is a positive for Vornado’s joint venture. However, the company itself has been struggling hard in recent times. In May, it reported lower-than-expected first-quarter 2017 funds from operations (“FFO”) per share, indicating a fall in occupancy in the Washington DC portfolio. Additionally, as part of portfolio-repositioning efforts, the company is aggressively disposing its assets, which has earnings dilutive effect. Further, stiff competition and hike in interest rates remain its concerns.
Also, currently, Vornado carries a Zacks Rank #4 (Sell). Moreover, over the past three months, shares of Vornado fell 8.0% and underperformed the Zacks categorized REIT and Equity Trust – Other industry’s gain of 5.5%.
Prologis’ estimates for second-quarter 2017 FFO per share moved north 4.0% to 78 cents, over the past 30 days.
PS Business Parks has a long-term growth rate of 5.0%.
Whitestone REIT’s FFO per share estimates for 2017 inched up 1.9% to $1.05, over the past 30 days.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
Vornado JV Obtains 99-year Leasehold of Farley Post Office
Vornado Realty Trust (VNO - Free Report) recently disclosed that its 50% joint venture with Related Companies has acquired a 99-year leasehold of Farley Post Office. The lease was struck with Empire State Development for the commercial space at this historic building. The move will enhance Vornado’s 9 million square foot Penn Plaza holdings.
Specifically, 850,000 square feet of commercial space would be developed by the joint venture. It would include around 730,000 square feet of office space and focus on creative class tenants. The development would also involve approximately 120,000 square feet of retail space.
A $230-million upfront contribution has already been made by the joint venture for the construction of the Moynihan Train Hall. Also, a $271-million loan facility, with an initial advance of $202 million, was completed by it. In addition, the joint venture has struck a development agreement with ESD and a design-build contract with Skanska Moynihan Train Hall Builders.
Such a transaction is a positive for Vornado’s joint venture. However, the company itself has been struggling hard in recent times. In May, it reported lower-than-expected first-quarter 2017 funds from operations (“FFO”) per share, indicating a fall in occupancy in the Washington DC portfolio. Additionally, as part of portfolio-repositioning efforts, the company is aggressively disposing its assets, which has earnings dilutive effect. Further, stiff competition and hike in interest rates remain its concerns.
Also, currently, Vornado carries a Zacks Rank #4 (Sell). Moreover, over the past three months, shares of Vornado fell 8.0% and underperformed the Zacks categorized REIT and Equity Trust – Other industry’s gain of 5.5%.
Stocks to Consider
Better-ranked stocks in the REIT space include Prologis, Inc. (PLD - Free Report) , PS Business Parks, Inc. and Whitestone REIT (WSR - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prologis’ estimates for second-quarter 2017 FFO per share moved north 4.0% to 78 cents, over the past 30 days.
PS Business Parks has a long-term growth rate of 5.0%.
Whitestone REIT’s FFO per share estimates for 2017 inched up 1.9% to $1.05, over the past 30 days.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>