"This sale represents another major milestone in FECI's program to monetize non-core assets, both at the railroad and at Flagler, and to focus our efforts on our core transportation and commercial real estate businesses," says Robert W. Anestis, chairman, president and CEO of Florida East Coast Industries.
Anestis says the sale "exceeded our 2003 realty sale forecast of $95 million to $110 million and ending 2003 with realty sale proceeds of approximately $124 million."
He adds the company plans to follow its disposition strategy of non-core assets in 2004. "Monetization of non-core properties, together with other realty sales, has brought the company over $210 million during the last two years," the FECI chairman says. "As part of this strategic initiative, we have been distributing to shareholders cash not required in our core businesses."
In 2003, Florida East Coast Industries distributed a special dividend totaling $55.1 million; increased its quarterly dividend by 60%; and announced a program to repurchase up to $75 million of its outstanding shares.
Commenting on the land sale, Flagler president G. John Carey says "we concluded this parcel had a higher market value when sold for future residential development" than for commercial, industrial or retail use.
Flagler Development Co. owns, develops, leases and manages about 6.6 million sf of class A office and industrial space, including 343,000 sf under construction. Flagler's properties are mostly in Jacksonville, Orlando, Fort Lauderdale and Miami. The company also owns 855 acres of entitled land in Florida which is available for development of up to an additional 14.8 million sf; and another 2,400 acres of other Florida properties.
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