Vornado Realty Trust
) penned a deal to exchange the redeveloped Springfield Town
Center in Virginia with
Pennsylvania Real Estate Investment Trust
) for $465 million. The deal is in line with Vornado's
strategic portfolio repositioning activity.
The $465 million that Vornado will get for the
transaction consists of $340 million in cash and
Pennsylvania Real Estate'soperating partnership units worth $125
million. Owing to the deal, Vornado will incur a non-cash
impairment loss of about $20 million in first quarter 2014. The
exchange deal will be completed by Mar 31, 2015.
SpringfieldTown Center, situated in Fairfax County, spans 1.35
million square foot. The redevelopment of the property is
anticipated to finish in the fourth quarter of 2014. We expect
the transaction to enhance Vornado's financial flexibility and
pave the way for more profitable investment opportunities.
Later in the last month, Vornado reported fourth-quarter 2013
results. Hurt by higher Toys 'R' Us losses, this real estate
investment trust (REIT) reported negative funds from operations
(FFO) per share of 4 cents in fourth-quarter 2013. The company
had reported FFO per share of 30 cents in the year-ago
However, on an adjusted basis, Vornado's FFO per share came in
at $1.33, higher than the year-ago FFO of $1.11. The Zacks
Consensus Estimate for fourth-quarter 2013 FFO per share stood at
Vornado currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the REIT industry include
Liberty Property Trust
Cousins Properties Inc.
). Both stocks hold a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.
COUSIN PROP INC (CUZ): Free Stock Analysis
LIBERTY PPTY TR (LPT): Free Stock Analysis
PENN RE INV TR (PEI): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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