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.
Federal Realty Sells Portion of San Antonio Center for $155M
Read MoreHide Full Article
Federal Realty Investment Trust (FRT - Free Report) recently sold under threat of condemnation a portion of San Antonio Center, in Mountain View, CA, for $155 million. A school will be constructed by the Los Altos School District on the 11.7-acre sold land.
The regional shopping center, aggregating 35 acres, was acquired by the company in 2015 for $62.2 million.
Kohl's, Jo-Ann, 24 Hour Fitness, and other small shop tenants occupied the portion of the property sold. The company will pay out tenant condemnation awards from sale proceeds.
Per management, the sale indicates value of the company’s premium real estate portfolio, specifically in Silicon Valley. In fact, the company controls 140 acres of land in the region. This includes 2.4 million square feet of commercial space and 662 residential units.
Amid challenging retail real estate market, the company’s disposal move reduces its exposure to such assets. In fact, issues such as shift of consumers toward online channels, dwindling mall traffic, store closures and bankruptcy of retailers have been making headlines and kept retail REITs on tenterhooks. These have resulted in turbulence in the retail real estate market, forcing structural changes. Even the likes of Simon Property Group, Inc. (SPG - Free Report) , Kimco Realty Corporation (KIM - Free Report) and Macerich Company (MAC - Free Report) were not immune and have made aggressive attempts to adapt to the changing scenario.
Moreover, in the past year, shares of Federal Realty have underperformed the industry. While the stock has appreciated 6.8%, the industry has gained 27.2% during this period.
To counter these challenges, the company is diversifying its portfolio with residential properties. Also, the company is selling non-core assets and redeploying the proceeds toward strategic growth schemes, in order to support its growth moves. Federal Realty is also focused on boosting its operating performance through expansion, renovation and re-tenanting. The company is also focused on expansion opportunities in premium markets, which generates income growth and creates long-term value. Such efforts bode well for the company’s long-term growth.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Federal Realty Sells Portion of San Antonio Center for $155M
Federal Realty Investment Trust (FRT - Free Report) recently sold under threat of condemnation a portion of San Antonio Center, in Mountain View, CA, for $155 million. A school will be constructed by the Los Altos School District on the 11.7-acre sold land.
The regional shopping center, aggregating 35 acres, was acquired by the company in 2015 for $62.2 million.
Kohl's, Jo-Ann, 24 Hour Fitness, and other small shop tenants occupied the portion of the property sold. The company will pay out tenant condemnation awards from sale proceeds.
Per management, the sale indicates value of the company’s premium real estate portfolio, specifically in Silicon Valley. In fact, the company controls 140 acres of land in the region. This includes 2.4 million square feet of commercial space and 662 residential units.
Amid challenging retail real estate market, the company’s disposal move reduces its exposure to such assets. In fact, issues such as shift of consumers toward online channels, dwindling mall traffic, store closures and bankruptcy of retailers have been making headlines and kept retail REITs on tenterhooks. These have resulted in turbulence in the retail real estate market, forcing structural changes. Even the likes of Simon Property Group, Inc. (SPG - Free Report) , Kimco Realty Corporation (KIM - Free Report) and Macerich Company (MAC - Free Report) were not immune and have made aggressive attempts to adapt to the changing scenario.
Moreover, in the past year, shares of Federal Realty have underperformed the industry. While the stock has appreciated 6.8%, the industry has gained 27.2% during this period.
To counter these challenges, the company is diversifying its portfolio with residential properties. Also, the company is selling non-core assets and redeploying the proceeds toward strategic growth schemes, in order to support its growth moves. Federal Realty is also focused on boosting its operating performance through expansion, renovation and re-tenanting. The company is also focused on expansion opportunities in premium markets, which generates income growth and creates long-term value. Such efforts bode well for the company’s long-term growth.
It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>