Excel Trust Sells Assets - Analyst Blog
July 07 2011 - 10:30AM
Zacks
Excel Trust, Inc.
(EXL), a real estate investment trust (REIT) primarily focusing on
retail assets, has recently sold six ‘triple-net’ leased assets for
$39.6 million, generating a net profit of approximately $3.0
million. A ‘triple net’ lease is one under which the tenant pays
all taxes, insurance, and maintenance for the properties, in
addition to rent.
The properties that were sold
included Walgreens in Corbin (South), Kentucky; Walgreens in
Barbourville, Kentucky; Walgreens in Beckley, West Virginia;
Walgreens in Princeton, West Virginia; Shop ‘n Save (SuperValu) in
Ballwin, Missouri; and Jewel-Osco in Morris, Illinois.
The asset sale is part of the long
term strategy of the company to purchase properties
opportunistically at significantly low prices and sell them at a
comparatively higher price at a later stage to profit from the
price differential during this holding period.
Since its inception, Excel Trust
has grown its portfolio through strategic acquisitions to a gross
asset value of approximately $500 million. The company targets
high-quality regional community centers and neighborhood
grocery-anchored centers, primarily anchored by leading retailers
of the country. Excel Trust usually enters into long-term leases
with its tenants, which insulate it from short-term market
volatility.
Unlike larger retail REITs that
focus on densely populated trade areas, Excel Trust has followed a
mid-market model, scurrying to own some very attractive mid-tier
shopping centers in both primary and secondary markets. The company
has acquired properties in diverse markets such as Scottsdale,
Arizona, Northern California and the Washington, D.C.
We currently have an ‘Underperform’
recommendation and a Zacks #5 Rank for Excel Trust, which
translates into a short-term ‘Strong Sell’ recommendation and
indicates that the stock is expected to perform well below the
overall U.S. equity market for the next 1–3 months. However, we
have a ‘Neutral’ recommendation and a Zacks #2 Rank (short-term
‘Buy’) for Developers Diversified Realty Corp.
(DDR), one of the peers of Excel Trust.
DEV DIVERFD RLT (DDR): Free Stock Analysis Report
EXCEL TRUST INC (EXL): Free Stock Analysis Report
Zacks Investment Research
Developers Realty (NYSE:DDR)
Historical Stock Chart
From May 2024 to Jun 2024
Developers Realty (NYSE:DDR)
Historical Stock Chart
From Jun 2023 to Jun 2024