Cousins Properties Incorporated
) recently sold a Tenn.-based retail property - The Avenue
Murfreesboro - for $163 million. The strategic move was in line
with the company's ongoing portfolio repositioning activity to
focus on higher growth markets.
The Avenue Murfreesboro is an open-air regional lifestyle
shopping center, spanning 752,000 square feet, in suburban
Nashville. The property has over 100 stores of major U.S.
retailers such as
Barnes & Noble, Inc.
Best Buy Company, Inc.
), Chico's, ULTA and
Dick's Sporting Goods, Inc.
Previously, Cousins Properties owned the divested property
through a 50/50 joint venture with Faison Enterprises. The
divestiture helped Cousins Properties to reap net proceeds of
about $36 million. The company plans to use the amount to
partially finance its impending acquisition of the Texas office
portfolio worth $1.1 billion, which is slated to close in
mid-September this year.
Notably, Cousins Properties is focused on building its
business on a simpler platform and specifically targets trophy
assets and opportunistic investments, which ensure a steady
revenue stream. In pursuit of this, last month, the company inked
a definitive deal to buy the above-mentioned Texas office
portfolio comprising 2 assets - Greenway Plaza (Houston) and 777
Main Street (Fort Worth) - for $1.1 billion. The acquisitions
will strengthen Cousins Properties' Texas portfolio with
Last month, Cousins Properties reported second-quarter 2013
results with funds from operations (FFO) per share of 12 cents,
beating the Zacks Consensus Estimate by a penny. However, it came
below the year-ago figure of 13 cents due to lower net income,
which resulted from preferred stock redemption charges in the
Cousins Properties currently carries a Zacks Rank #3
Note: FFO, a widely used metric to gauge the performance of
REITs, are obtained after adding depreciation, amortization and
other non-cash expenses to net income.
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