Post has new contracts on nine properties where sales are expected to close this year, Stockert says. The contracts include six properties in the city, two in Dallas and one in Orlando.
"We continue to pursue an aggressive program of asset sales designed to take advantage of high demand for apartment properties in an environment of strong capital flows and low cap rates to realize the value of our assets, while repositioning our portfolio over time to produce more diversified and stable cash flow and improve its overall quality," Stockert says.
He expects the buyers to acquire the nine properties "subject to a combined total of approximately $119 million" of tax-exempt bond financing. Post will realize GAAP accounting gains of about $136 million to $140 million on the sales. Economic gains, before accumulated depreciation and write-downs for asset impairment charges, should be about $58 million to $62 million, Stockert says.
The company also expects to realize taxable capital gains in 2004 from these sales totaling about $102 million to $106 million. Post "expects to be able to use its regular quarterly dividend of 45 cents per share, as well as other tax-planning strategies, to pay out or otherwise mitigate the impact of these taxable capital gains," the company president says. "We are committed to utilizing sales proceeds in ways that strengthen our balance sheet and drive long-term value for our shareholders.
Continue Reading for Free
Register and gain access to:
- 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
© 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.
