Vornado Realty Trust
), a real estate investment trust (REIT), recently announced that
it has inked deals to sell two properties to undisclosed buyers.
The company is going to sell the Reston Executive Center located
in Virginia for $126 million and another property in downtown
Philadelphia for $60 million.
The company will get the combined net proceeds of $89 million
from the sales after the repayment of existing loan and closing
costs. Vornado Realty will earn a profit of around $70 million
from the twin transactions.
Fairfax county-based Reston Executive Center is a class A three
building office property and spans a total space of around
494,000 square feet. The office center is well connected to major
roadways, airport and other important communication networks.
The center is around 78% leased to commercial tenants such as
), Genesis Partners, Inc. and New View Laser Eye Center. The
second sold building is a part of a property - The Gallery at
Market East - situated on Market Street in Philadelphia.
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Vornado Realty is highly active on portfolio restructuring
activity. Last month, the company penned an agreement with
another REIT -
The Macerich Company
) to sell the Green Acres Mall in Valley Stream, New York, for
$500 million. Earlier this quarter, the company's 25% owned real
estate fund, Vornado Realty Capital Partners, L.P acquired a
retail property named 1100 Lincoln Road for $132 million.
Vornado Realty is the largest publicly traded office REIT in the
New York region concentrating on Class A office properties. The
company is engaged in acquiring, owning and leasing office
properties, retail space, and temperature-controlled logistics
and refrigerated warehouses.
Vornado Realty is expected to release its third-quarter 2012
results on November 1. The Zacks Consensus Estimate for FFO (fund
from operations) for the quarter is currently pegged at $1.17 per
We have a long-term Neutral recommendation on Vornado Realty.
Also, it holds a short-term Zacks #3 Rank (Hold).
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.