"We continue to take advantage of the liquid market for our valuable assets, realizing sizable gains on sales and recycling the proceeds back into the company," Jeffrey P. Krasnoff, president and CEO of LNR, says in the recently released financial statement. "In addition, several new multi-year financings helped us to further strengthen our balance sheet and liquidity."
Total revenue and other income increased 20% to $114.75 million during the first quarter. This is attributable to increased rental income, higher equity in earnings from unconsolidated partnerships and higher gains on sales of assets.
Net rents grew 21%, or $2.7 million, in the first quarter, compared with the same quarter in 2002. This was a result of properties previously under development or undergoing repositioning being completed and tenants beginning to pay rent.
Krasnoff notes that, "Our investment strategy remains extremely cautious. We focus only on investments where we have a competitive advantage, where our due diligence team can clearly measure downside risk, and where we can utilize our hands-on expertise to manage those risks on an asset-by-asset basis."
In the first quarter, the company had more than $500 million in new investments and bought back more than $135 million of its own stock. "In doing so, we have been able to take advantage of a unique opportunity to buy assets that we already know very well, at a discount to both book and fair market value," Krasnoff states.
LNR Property Corp.'s investments include office buildings, rental apartment communities, industrial/warehouse facilities, retail centers, hotels and land.
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© 2024 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.
