DCT Industrial Set to Acquire Assets - Analyst Blog


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DCT Industrial Trust Inc. ( DCT ), a real estate investment trust (REIT), recently announced that it has entered into an agreement to purchase a portfolio of four industrial assets in Chicago and Los Angeles. The properties were purchased from an unnamed seller for an undisclosed amount.

DCT industrial has extended a deposit for the transaction, which is subject to the loan assumption and standard closing conditions. The deal is expected to be completed in the fourth quarter of 2012.

The assets spanning 563,000 square feet, are currently 99.6% occupied by eight tenants. The Class-A state-of-the-art air freight buildings are a strategic fit to the company's portfolio and are located in submarkets with low vacancy rates. The off-market transaction is in line with DCT Industrial's ploy of strengthening its presence in key markets.

Three of the acquired facilities are located in the Los Angeles International Airport submarket and the other in the Chicago O'Hare International Airport submarket. Post-acquisition, DCT Industrial's Southern California and Chicago portfolios will add up to 4.5 million square feet with 99.7% occupancy and 4.1 million square feet with 96.3% occupancy, respectively.

DCT Industrial is a leading industrial real estate company that owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico.  

As of June 30, 2012, the company owned interests in, managed or had under development approximately 76.0 million square feet of properties, which have been leased to more than 900 customers. These include 17.5 million square feet of properties managed on behalf of five institutional management partners.

DCT Industrial currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have our long-term Neutral recommendation on the stock. One of its competitors, Duke Realty Corp ( DRE ) also holds a Zacks #3 Rank.

DCT INDUSTRIAL (DCT): Free Stock Analysis Report
DCT INDUSTRIAL (DCT): Free Stock Analysis Report
DUKE REALTY CP (DRE): Free Stock Analysis Report
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