CBL & Associates Properties, Inc.
) recently sold a mall portfolio to an offshore investor with an
Atlanta-based partner, Hendon Properties, for $176 million. This
real estate investment trust (REIT) used the net proceeds from
the divestiture to reduce outstanding debt under its unsecured
The sold property portfolio comprised three malls and three
associated properties, includes Panama City Mall and The Shoppes
at Panama City in Panama City, Fla.; Georgia Square Mall and
Georgia Square Plaza in Athens, Ga.; and Rivergate Mall and
Village at Rivergate in Nashville, Tenn.
Jones Lang LaSalle Incorporated
) represented CBL & Associates in this divestiture
We believe that the divestiture is a strategic fit as the
funds generated will help in reducing CBL & Associates' debt
as well as finance its growth plans in core U.S. markets. This,
in turn, will help the company to overcome competitive pressure.
Notably, the company expects its 2013 funds from operations (FFO)
to experience a benefit of 2 cents per share from the
Off late, CBL & Associates has been focusing on raising
capital for reducing debt and enhancing portfolio quality. As a
part of such measures year to date, the company has raised over
$425 million in equity. This was achieved through ATM offerings,
office buildings offload as well as the above-mentioned portfolio
CBL & Associates is slated to release third-quarter 2013
results on Nov 5, 2013. The Zacks Consensus Estimate for the
company's third-quarter FFO is currently pegged at 54 cents per
Better performing REITs include
Acadia Realty Trust
Cedar Realty Trust, Inc.
), both of which have a Zacks Rank #2 (Buy).
Note: FFO, a widely accepted and reported measure of the
performance of REITs, is derived by adding depreciation,
amortization and other non-cash expenses to net income.
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