In some ways, the move reflects the still-sluggish market for shares of some real estate investment trusts, analysts say. Though the REIT market has recently strengthened, many still sell for far less than the underlying value of the properties in their portfolios.
To build shareholder value, Pacific Gulf began selling many of its assets to individual buyers earlier this year. In June, it announced plans to sell its industrial holdings for $929 million to California-based CalWest Industrial Properties. It also agreed to sell one-third of its apartment holdings for $93 million to three buyers in August.
The strategy has been working. Pacific Gulf's shares closed Friday at $26.81 a share, not far off its 52-week high of $27.93 a share. Its stock was selling for only about $19 a share before it began selling off its assets.
The company's remaining holdings include about 1,500 completed apartment units, 900 more that are under construction, and Pacific Gulf's Newport Beach headquarters building.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
