Equity Residential Raises Asset Sale Outlook to $900 Million
Bloomberg reports: Equity Residential, the largest publicly traded owner of apartments in the U.S., raised its forecast for property sales this year to $900 million as investor demand increased.
Nationwide sales of rental apartments climbed 12 percent in the third quarter from the previous three months to $3.6 billion, according to research firm Real Capital Analytics. Scarce credit and falling property values slowed the pace of deals beginning in 2008. Equity Residential’s long-standing strategy is to exit so-called second-tier markets and buy in cities including New York, Los Angeles and Washington.
The company began 2009 anticipating $700 million in property sales, Marty McKenna, a spokesman for the Chicago-based REIT, said in an interview today. It later boosted that forecast to $800 million, he said.
Proceeds “strongly position us to take advantage of any future opportunities to add high-quality properties to our portfolio,” Equity Residential Chief Executive Officer David Neithercut in a statement yesterday announcing quarterly results.
Billionaire investor Sam Zell established Equity Residential in 1969 and owns about 1 percent of the shares, according to data compiled by Bloomberg.
Pending acquisitions include a 326-unit apartment building in Pentagon City outside Washington for $99 million. Equity Residential may complete the deal as early as tomorrow, Neithercut said.
The REIT sold 24 properties totaling 4,620 apartments in the third quarter for an aggregate value of $381.1 million, the company said in a statement. It sold 47 properties this year for a total of $734.5 million.
View the full article on Bloomberg: Equity Residential Raises Asset Sale Outlook to $900 Million
Articles related to this topic:
Real Estate Stock Talk: Should You Buy REITs?
Buyout Fund Contemplates a REIT Turn
Rosen's Piece of Zell's Office Empire Takes Downward Dive
Capmark Increased Office, Hotel Loans as Zell Saw Top
Posted by: Matthew Stone