Equity One Inc. (EQY) recently announced that it has acquired a new property, namely Old Connecticut Path, for $23.2 million. The acquisition is a part of the company's joint venture (JV) with New York Common Retirement Fund.
Old Connecticut Path is an 80,198 square foot retail center with Stop & Shop as the anchor. The property is strategically located at the intersection of old Connecticut path and Route 30 in Framingham, Massachusetts. The recent acquisition is a valuable addition to Equity One's portfolio. The property is expected to be accretive for the company given its benefits and future potential arising from the favorable location in a densely populated area with high average household income.
New York State Common Retirement Fund is the third largest public pension plan in the United States. The fund primarily provides finance benefits to more than one million members, retirees and beneficiaries from state and local governments.
Equity One reported third quarter 2011 funds from operations (FFO) of $12.8 million or 10 cents per share compared with $22.2 million or 24 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.
Equity One owns, manages and develops community shopping centers in the United States. As of September 30, 2011, Equity One owned or had interests in 199 properties, consisting of 176 shopping centers comprising approximately 20.7 million square feet. Additionally, Equity One has joint venture interests in 16 shopping centers and 2 office buildings, totaling approximately 2.7 million square feet.
Equity One currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Regency Centers Corporation ( REG ) also holds a Zacks #3 Rank.
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