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DCT Industrial Sheds Mexico Portfolio - Analyst Blog

Posted
10/18/2013 5:50:00 PM
By: Zacks.com
Referenced Stocks:CLDT;DCT;PKY;SOHO

Industrial real estate investment trust (REIT) - DCT Industrial Trust Inc. ( DCT ) - disposed its entire Mexico portfolio for $82.7 million. The disposition comes as part of the company's portfolio repositioning strategies. The assets were divested to an investment trust of Macquarie Mexican REIT.

As a matter of fact, DCT Industrial Trust is aiming to enhance its business in niche U.S. distribution markets and lower the number of markets in which it operates. We believe that for this REIT, the above mentioned move will help reap decent proceeds that the company can efficiently deploy toward its growth initiatives.

Recently, the company acquired a 6-building portfolio in the Chicago area: DCT Fox River Business Center in Elgin. The portfolio, aggregating 1.1 million square feet, offers room for DCT Industrial Trust to leverage on the growing market demand for its facilities in this locality.

Moreover, in recent months the company acquired 45 acres in Inland Empire West submarket of Southern California, where it plans to construct a cross-dock distribution facility spanning approximately 970,000 square foot. Also, DCT Industrial Trust purchased a 3 building portfolio in the Tempe/Airport submarket of Phoenix. Spanning 308,000 square feet, the Class-A buildings have 100% occupancy.

With a larger customer base, an increase in e-Commerce application and supply chain consolidation, the demand for logistics infrastructure and efficient distribution networks have risen in the U.S.

DCT Industrial is poised to benefit from its proficiency in offering modern distribution facilities through acquisitions and development projects in strategic infill locations. Hence, the dispositions help DCT Industrial infuse capital so as to continue with its efforts to strengthen its base in key markets.

DCT Industrial currently carries a Zacks Rank #4 (Sell). However, other REITs that are performing well and deserve a look include Chatham Lodging Trust ( CLDT ), Parkway Properties Inc. ( PKY ) and Sotherly Hotels Inc. ( SOHO ). All these stocks carry a Zacks Rank #1 (Strong Buy).



CHATHAM LODGING (CLDT): Free Stock Analysis Report

DCT INDUSTRIAL (DCT): Free Stock Analysis Report

PARKWAY PPTY (PKY): Free Stock Analysis Report

SOTHERLY HOTELS (SOHO): Get Free Report

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