Pebblebrook Hotel TrustPEB continues its spate of asset sales with the latest one being an 826-space parking garage at Revere Hotel Boston Common for $95.0 million. A few days ago, the company also announced the sale of the 252-room, upper upscale Dumont NYC in New York for $118.0 million.
These sales are part of Pebblebrook's strategic disposition plan initiated last year. The dispositions help the company to take advantage of the disparity between private market values and public market values. The company has already reaped gross proceeds of $676.8 million, which includes the sale of five hotels and two non-hotel assets.
The latest sale of the garage, which includes 10,500 square feet of vacant ground floor, is expected to lower the company's adjusted funds from operations (FFO) per share by approximately $0.2 million in the second quarter and around $1.3 million or 2 cents per share on a combined basis for the second, third and fourth quarters. The company plans to use the proceeds from the sale to meet its general business needs. It may include lowering of its outstanding debt or buying back of common shares.
Currently, Pebblebrook carries a Zacks Rank #3 (Hold). It is a consistent performer, having surpassed the Zacks Consensus Estimate in terms of FFO per share in each of the trailing four quarters, with an average beat of 8.4%.
Also, over the past six months, shares of Pebblebrook have climbed 12.6% and outperformed the Zacks categorized REIT and Equity Trust - Other industry's gain of 8.1%.
Stocks to Consider
Better-ranked stocks in the REIT space include Prologis, Inc. PLD , PS Business Parks, Inc. PSB and Whitestone REIT WSR . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Prologis' estimates for second-quarter 2017 FFO per share have moved north by 4.0% to 78 cents, over the past 30 days.
PS Business Parks has a long-term growth rate of 5.0%.
Whitestone REIT's FFO per share estimates for 2017 have inched up 4.0% to $1.05, over the past 60 days.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. 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.
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