HOME ZACKS RESEARCH FUNDS PORTFOLIO BROKER RESEARCH MARKETS SCREENING VIDEO EDUCATION SERVICES
Zacks Rank    Equity Research    Premium Home    My Account    Help    
Quote:
Login Free Membership
Search:

Analyst Blog  

Duke Realty to Shed Assets

Share
By: Zacks Equity Research
October 21, 2011 | Comment(s): 0
Recommended this article (6)
HIW | DRE

Duke Realty Corporation (DRE - Analyst Report) recently entered into an agreement to dispose a 10.1 million square foot portfolio of suburban office properties spanning 7 markets across the Midwest and Southern regions. The company stated that an affiliate of Blackstone Real Estate Partners VII has agreed to purchase the 82 building portfolio for approximately $1.08 billion.

The Suburban Office Portfolio is currently 84.6% leased and the assumed debt in the transaction is expected to be $30 million. Duke Realty expects to close the transaction by December 2011.

Through this deal, Duke Realty intends to achieve an investment allocation of 60% industrial, 25% office and 15% medical office, consisting of the highest quality assets within each product sector.

This transaction is a long-term strategic move on the company’s part to reposition its portfolio from suburban office properties in the Midwest to industrial properties in existing and new markets, which have immense potential for long-term growth. This deal will likely generate over $1 billion in capital for the acquisition and development of industrial and medical office assets. With this deal, the company seeks to further reduce its leverage and strengthen its balance sheet.

Headquartered in Indiana, Duke Realty Corporation is a real estate investment trust (REIT), operating as a fully integrated owner, manager, and developer of industrial, office, and healthcare properties.

Duke Realty currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Highwoods Properties Inc (HIW - Analyst Report) has a Zacks #3 Rank which translates into a short-term Hold rating.  

Read the full analyst report on HIW

Read the full analyst report on DRE

 

Please login to Zacks.com or register to post a comment.



Email

Print

Share

Rate Pos

Rate Neg
Attn. Zacks.com Visitors
7 Best Stocks for the Next 30 Days
Get your free Welcome Gifts today*:
 1.  Special Report with best short-term Zacks recommendations from the list that averages a gain of +26% per year
 2.  Our free e-newsletter with 4 "Strong Buy" stocks, Bull & Bear of the Day, and market commentary in every issue.
Get them free right now
  
No cost. Unsubscribe anytime. Privacy Policy
*Only for non-members. May end at any time.

More Zacks Resources

Market Summary May 26, 2012 13:05 pm ET
DJIA 12454.83  -74.92 -0.60%
NASD 2837.53  -1.85 -0.07%
S&P 500 1317.82  -2.86 -0.22%
Partner Center