), a real estate investment trust (REIT), recently entered into
an agreement to acquire a Class A office property in an unnamed
city for $35.5 million. The acquisition is expected to close
before the end of the year. The average capitalization rate for
this deal is approximately 8%. Post this transaction, the 2012
acquisition volume for the company is expected to grow over $140
CapLease expects to finance this transaction with a 55%
loan-to-cost non-recourse mortgage of the property. The strategic
move by the company aims to enhance the quality of its overall
portfolio and is expected to be accretive in the coming quarters.
The company has been very active on the acquisition front and the
financial flexibility further enhances its capacity to support a
pipeline of new investment opportunities.
CapLease reported third quarter 2012 adjusted FFO (funds from
operations) of $11.5 million or 17 cents per share compared with
$10.4 million or 15 cents per share in the year-earlier quarter.
CapLease is focused on finance and investment in commercial real
estate that is net leased primarily to single tenants with
investment grade or near investment grade credit ratings. It
provides private and corporate owners of net lease real estate
with equity, debt, and mezzanine financing option.
CapLease currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We have a long-term Neutral
recommendation on the stock. One of its competitors,
Lexington Realty Trust
) also holds a Zacks #3 Rank.
Note: Fund from operations, a widely used metric to gauge
the performance of REITs, is obtained after adding depreciation
and amortization and other non-cash expenses to net
CAPLEASE INC (LSE): Free Stock Analysis
LEXINGTON PPTY (LXP): Free Stock Analysis
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