On Feb 14, Real estate investment trust (REIT)
Vornado Realty Trust
) declared that it has inked a deal to sell Broadway Mall for $94
million. The sale of the mall located on Route 106 in Hicksville,
Long Island, New York is anticipated to close in first-quarter
Through this deal, Vornado will reap around $92 million in net
proceeds (after closing costs). Notably, non-cash impairment loss
of $13.4 million related to the Broadway Mall will be reflected
in the company's fourth-quarter 2013 financial results.
The Broadway Mall, previously known as Mid-Island Plaza,
commenced operations in Oct 1956 and was acquired by Vornado in
2005. Currently, the mall has an anchor tenant base that includes
Macy's, Target, Forever 21, and Long Island's only IKEA store.
The latest move reflects Vornado's strategy to streamline its
mall business. Broadway is the last shopping complex owned by
Vornado in Long Island. In Jan 2013, the company disposed another
shopping mall - Green Acres Mall - to Santa Monica,
The Macerich Company
) for $500 million.
We expect these concerted efforts to enhance Vornado's financial
flexibility and pave the way for more profitable investment
opportunities. Also, these would strengthen its Class A office
properties portfolio that is concentrated in select high-rent,
high barrier-to-entry geographic markets, and usually fare better
amid challenging economic conditions.
Vornado currently carries a Zacks Rank #3 (Hold). Some
better-ranked REITs include
Sabra Health Care REIT, Inc.
Chatham Lodging Trust
). Sabra Health Care holds a Zacks Rank #1 (Strong Buy) while
Chatham Lodging carries a Zacks Rank #2 (Buy).
CHATHAM LODGING (CLDT): Free Stock Analysis
MACERICH CO (MAC): Free Stock Analysis Report
SABRA HEALTHCR (SBRA): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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