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.
First Potomac (FPO) Disposes JV Assets for $59.5 Million
Read MoreHide Full Article
First Potomac Realty Trust declared selling of two joint-venture (JV) assets for $59.5 million to an affiliated company of Adler Kawa Real Estate Advisors. The dispositions are in line with the company’s strategic plan of lowering portfolio risk, de-leveraging balance sheet and maximizing value of its assets.
The two JV assets disposed were Rivers Park I and II in Columbia, MD, and Aviation Business Park in Glen Burnie, MD. First Potomac Realty owned a 25% stake in Rivers Park I and II, and 50% interest in Aviation Business Park. The assets comprised 428,268 square feet of space and were owned in unconsolidated joint ventures with an affiliate of AEW Capital Management.
The company reaped gross proceeds of $18.975 million from the sales. It used the proceeds to pay off existing debt and for general corporate needs.
Notably, the company had completed an extensive underwriting of its business, portfolio and team in the beginning of 2016. Based on this underwriting, it undertook a strategic plan that included the sale of $350 million of non-core assets. First Potomac Realty has already sold $311 million of assets towards its mentioned target.
On the other hand, the company has scope to capitalize on growth opportunities in the Washington, D.C. office market. While the rightsizing efforts on part of the government and public sector, and new supply issues have created concerns; there have been efforts toward diversification of the D.C. economy which are likely to drive growth of the real estate market.
First Potomac currently has a Zacks Rank #3 (Hold).
Shares of First Potomac slightly outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past one year. Over this time frame, First Potomac logged in a return of 5.5% against 5.1% gain of the industry.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by 0.6% to $1.73, over the past 30 days.
W. P. Carey is a steady performer, having exceeded the Zacks Consensus Estimate in each of the four trailing quarters, with an average beat of 12.38%.
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.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
First Potomac (FPO) Disposes JV Assets for $59.5 Million
First Potomac Realty Trust declared selling of two joint-venture (JV) assets for $59.5 million to an affiliated company of Adler Kawa Real Estate Advisors. The dispositions are in line with the company’s strategic plan of lowering portfolio risk, de-leveraging balance sheet and maximizing value of its assets.
The two JV assets disposed were Rivers Park I and II in Columbia, MD, and Aviation Business Park in Glen Burnie, MD. First Potomac Realty owned a 25% stake in Rivers Park I and II, and 50% interest in Aviation Business Park. The assets comprised 428,268 square feet of space and were owned in unconsolidated joint ventures with an affiliate of AEW Capital Management.
The company reaped gross proceeds of $18.975 million from the sales. It used the proceeds to pay off existing debt and for general corporate needs.
Notably, the company had completed an extensive underwriting of its business, portfolio and team in the beginning of 2016. Based on this underwriting, it undertook a strategic plan that included the sale of $350 million of non-core assets. First Potomac Realty has already sold $311 million of assets towards its mentioned target.
On the other hand, the company has scope to capitalize on growth opportunities in the Washington, D.C. office market. While the rightsizing efforts on part of the government and public sector, and new supply issues have created concerns; there have been efforts toward diversification of the D.C. economy which are likely to drive growth of the real estate market.
First Potomac currently has a Zacks Rank #3 (Hold).
Shares of First Potomac slightly outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past one year. Over this time frame, First Potomac logged in a return of 5.5% against 5.1% gain of the industry.
Stocks to Consider
Better-ranked stocks in the REIT space include CoreSite Realty Corporation (COR - Free Report) , Piedmont Office Realty Trust, Inc. (PDM - Free Report) and W. P. Carey Inc. (WPC - 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.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by 0.6% to $1.73, over the past 30 days.
W. P. Carey is a steady performer, having exceeded the Zacks Consensus Estimate in each of the four trailing quarters, with an average beat of 12.38%.
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.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>