Parkway Properties, Inc.
), a real estate investment trust (REIT), recently announced that
it has completed its previously announced divestiture of assets,
namely '100 Ashford Center' and 'Peachtree Ridge,' both located in
Atlanta for $29.9 million. At the time of closure, the two assets
were a combined 74.6% occupied totaling 321,000 square feet.
With the completion of this deal, Parkway Properties dispensed
with all the assets belonging to its discretionary fund known as
Fund 1, which included the assets located in Atlanta. The net
proceeds generated from the asset disposition were $211,000.
Additionally, Parkway Properties also sold a property in New
Orleans for $765,000. The 32,000-square-foot property was 100%
vacant at closing. The net proceeds generated from this sale were
The asset divestiture should facilitate financial flexibility
for Parkway Properties and improve the overall quality of its
Parkway Properties reported first quarter 2012 FFO (funds from
operations) of 43 cents per share compared with 59 cents in the
year-earlier quarter. Funds 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
Parkway Properties specializes in the ownership of office
properties in the highgrowth submarkets in the Sunbelt region of
the United States. As of June 6, 2012, the company had interest in
42 office properties located in 10 states with an aggregate of
approximately 10.6 million square feet of leasable space.
Parkway Properties currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Brandywine Realty Trust Common
) also holds a Zacks #3 Rank.
BRANDYWINE RT (BDN): Free Stock Analysis Report
PARKWAY PPTY (PKY): Free Stock Analysis Report
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