(For more retail coverage, click GlobeSt.com/RETAIL.)
ORLANDO-With $152.9 million in single-tenant, net-lease acquisitions under its belt in the second quarter, Trustreet Properties Inc. says it's confident that it will reach its goal of adding $300 million to $325 million to its portfolio in 2005. So far this year, the REIT has completed $190.3 million in new acquisitions including the $139 million in sale-leaseback financing for 67 Perkins Restaurant and Bakery stores.
Currently, the REIT has another $174.4 million of restaurant properties under contract, the majority of which is expected to close by year-end, according to Curtis McWilliams, president and CEO. He adds that the REIT is facing stiff competition from other investors, which has created a challenging acquisition environment.
"We continue to see new market entrants playing in the restaurant space," he says. "The good news is that restaurant operators are recognizing the value of working with a trusted landlord, which will favor Trustreet going forward."
The REIT also is benefiting from the strong acquisition market as it sells off pieces of its portfolio, which at the end of the second quarter, consisted of 1,768 properties with a 94.1% occupancy rate. The portfolio produced $18.6 million in funds from operations, representing 32 cents per share. During the second quarter, the REIT sold 33 properties for a total of $70.8 million. The dispositions produced a net gain to the company of $11.4 million.
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